ALBANY, NY, June 22, 2023 – Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna Computing, Inc. (“SCI”), a developer of green data centers for Bitcoin mining and other intensive computing applications, announced an open letter to shareholders from Soluna Holdings CEO, John Beliziare.
Open Letter to Shareholders from John Belizaire, CEO of Soluna Holdings, Inc.
As the new CEO of Soluna Holdings, Inc., I want to share my reflections on the past year and outline our path ahead, and I want to acknowledge the challenges we faced and commend the resilience and adaptability of our organization.
In 2022, we had ambitious plans to energize over 100 MW of new data centers powered by renewable energy but changes in the business environment got in the way. Key players in the crypto ecosystem collapsed. The war in Ukraine negatively impacted our financing options and power costs.
We adapted. We changed our strategy and continued pursuing our goals. We secured project-level financing with Spring Lane Capital and implemented cost-cutting measures, including staff layoffs, while maintaining our focus on Project Dorothy, our flagship project in Texas.
Looking ahead to 2023, our primary focus is on energizing and commercializing Project Dorothy. We received final approval from the Texas regulator, ERCOT, and closed a transaction with Spring Lane Capital to provide the liquidity to complete the 25 MW Project Dorothy 1A. We signed a Joint Venture agreement with Navitas Global, a significant step towards building a 25 MW proprietary mining business at Project Dorothy 1B. Project Sophie in Kentucky secured a 25 MW hosting agreement, which is expected to enhance profitability and serve as the core business model as we begin plans for Project Dorothy 2, which holds great potential for capital-efficient growth.
We are a leading curtailment solutions provider with an expertise in renewable energy and a strong reputation for solving the industry’s biggest challenge, wasted energy. Our behind-the-meter energy costs are among the best in the industry, resulting in solid returns on invested capital. Our pipeline of behind-the-meter projects exceeds 700 MW, and even a fraction of this pipeline has the potential to drive substantial growth and profitability. All of which positions us to achieve positive cash flow from operations in the second half of 2023.
Our proprietary modular design data centers combined with our proprietary MaestroOS(™), enable us to optimize operations, generate strong cash flows and are architected to generate a two-year return of capital invested.
I firmly believe in our mission of making renewable energy a superpower using computing as a catalyst. The passing of the Inflation Reduction Act of 2022 represents a significant opportunity in the renewable energy space, with more projects being built around the grid and congestion becoming a larger issue.
Bitcoin’s prominence in the crypto space and its increasing need for secure solutions make it a perfect fit for our curtailed energy approach, and the rise of AI presents further growth and diversification opportunities for our company.
I extend my deepest gratitude to all of you for your continued support of Soluna and our long-term mission. We are committed to executing our plans and generating value for our shareholders.
Soluna Holdings, Inc.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.
About Soluna Holdings, Inc (SLNH)
Soluna Holdings, Inc. is the leading developer of green data centers that convert excess renewable energy into global computing resources. Soluna builds modular, scalable data centers for computing intensive, batchable applications such as Bitcoin mining, AI, and machine learning. Soluna provides a cost-effective alternative to battery storage or transmission lines. Soluna uses technology and intentional design to solve complex, real-world challenges. Up to 30% of the power of renewable energy projects can go to waste. Soluna’s data centers enable clean electricity asset owners to ‘Sell. Every. Megawatt.’
Founder and CEO