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Ask Me Anything (AMA): Answering $SLNH Investors’ FAQs


AMA, Business, CEO, Investors, Startup

Welcome to another installment of Soluna’s AMA (Ask Me Anything) series, where you — our readers and our followers on Twitter and LinkedIn — can get your questions answered.

In this Q&A, John Belizaire, CEO of Soluna Holdings, Inc., answers shareholders’ and potential investors’ most-asked questions.

Learn how to submit your questions at the end of this AMA.

Terry asked: Will the new AI agreement at Project Sophie be revenue-neutral for Soluna?  Congratulations on the move.

Thank you. We are excited to begin the development of our first AI hosting contract and launch our next growth phase, but we do not give forward-looking guidance.  However, it’s reasonable to assume that these AI contracts will be more lucrative than Bitcoin Hosting on a per MW basis.

Terrence asked: When does the company project that Spring Lane Capital will achieve its 18% hurdle rate on Dorothy 1A allowing for increased revenue to Soluna?

We do not give forward-looking guidance, but we are continuously reviewing and improving our operational efficiency to accelerate clearing the return hurdle and achieve a higher revenue share. And, so far we are on track to do so.

Brad asked: I am a big investor in your company and I am very concerned with the way the company dilutes shareholders. Your stock is not even moving up with bitcoin price because investors don’t believe in the company. Please update that the company will stop the dilution. Thanks

The current capital structure, which was an important source of funding for the company during a challenging period, is not designed to support our next growth phase. There is a short-term cost to restructuring our capital stack to position the company to pursue that next growth phase and increase shareholder value. We are executing that restructuring in the most effective manner available to the Company given the constraints associated with the existing structure.

Peter asked: Any insight as to how much the expected halving of bitcoin later this year will likely affect Soluna? Will customers likely be mining less and using less energy? How much is revenue affected by Bitcoin prices? In the June 2023 presentation, they list $26,500 as the price assumption. What does revenue look like at a $20k, $30k, or $40k BTC price? Any idea how much of a profit-sharing exists on the new 8.8MW hosting contract at Project Sophie announced 1/22/24? Any information as to why this is just a 1-year contract?

Expert opinions on the impact of the halving vary significantly and, while we do not provide forward-looking guidance, we are planning for a challenging period as the market and industry adapt to the post-halving environment.  This halving is a bit different from the past thus far, we have higher interest rates, we have several Bitcoin ETFs that are experiencing large inflows from institutional investors, and Bitcoin – as of this AMA – has already hit its all-time highs.  This is something that normally happens after the halving.

One-year contracts are standard in the industry. But, we keep them short to allow us to encourage customers to upgrade their equipment or place customers in our sites that have higher efficiency miners to deploy.

Thank you for submitting your questions!

If you’re reading this and haven’t had a chance to ask your question, it’s not too late.

Fill out this form, or drop your questions on Twitter @SolunaHoldings, to have your questions answered in our next AMA installment.

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