Soluna Holdings Reports Q3 Results

Performance Includes 176% Increase in Revenue and Operating Profit Milestone

ALBANY, NY, November 15, 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, reported financial results for the third quarter ended September 30, 2023.

John Belizaire, CEO of Soluna Holdings, said, “We are delighted to announce the successful completion of Project Dorothy 1B, marking a significant milestone for Project Dorothy. The project is now fully operational, and we are witnessing the tangible impact of its earnings potential.”

Belizaire went further on to say, “Our dedicated team has demonstrated exceptional execution across our four strategic focus areas, as outlined in our shareholder letter: the energizing of Project Dorothy, Cash Flow and Expense Management, Expanding our Flagship, and Growing our Pipeline. The business transition initiated in Q2 is yielding positive results, evident in our latest financials. Despite the challenges posed by the summer heat in Texas and Kentucky, our team’s focused and meticulous efforts have propelled us to our first quarter of gross profit and substantial business growth from earlier lows.” 

Belizaire concluded by saying, “With Project Dorothy 2 on the immediate horizon, Project Kati setting up its robust earnings power and the vast potential of AI at our doorstep, we have a solid foundation for future growth. ”

Finance and Operational Highlights:

Substantial cash balance – The unrestricted cash balance as of September  30, 2023, was $5.6 million compared to $1.1 million as of December 31, 2022. This is driven by new project-level investments, operational execution, and expense management measures implemented in the first half of the year.

EBITDA Milestone – The Company achieved a positive Adjusted EBITDA for the first time since second quarter 2022.

Revenue Ramp – Revenue in the third quarter increased by 176% to $5.8 million compared to $2.1 million in the second quarter of 2023. The revenue increase is driven by the continued ramp in the Project Dorothy sites, including hosting and proprietary mining.

Project Dorothy 1A and 1B  fully operational as of October 31 2023 – Installed hashrate of 1.76 EH/s in Project Dorothy 1A/1B fully and it is fully operational. This brings the Company’s total installed hashrate to 2.6 EH/s.  Project Dorothy consumed over 4,000 MWh of curtailed energy through the end of October solidifying the effectiveness of Soluna’s innovative solution to monetizing curtailed energy. 

Ancillary services revenue – The Company completed its pre-registration for Ancillary Services with ERCOT, bringing it closer to diversifying its revenue by having Project Dorothy serve as a grid resource.

As of the end of the third quarter of 2023, Soluna deployed over 23,600 bitcoin miners (between hosting and prop mining) across all sites. And, the Company operated at an average hashrate of 2.4 EH/s across all sites as Project Dorothy became fully energized by late summer. 

AI initiative – The Company  launched a new initiative focused on a new data center purpose-built for AI training workloads.  The new design code-named “Helix” will be part of Project Dorothy 2; due to start in the first quarter of 2024.  The Company also formed a new Advisory Board to accelerate the Company’s AI initiatives and tapped Daniel Golding, a former head of advanced engineering and data center innovation at Google. 

Financial Summary:

Key financial results for the third quarter include:

  • Total revenue in the third quarter of 2023 increased by 176% to $5.8 million compared to $2.1 million in the second quarter of 2023. The increase is primarily attributable to the ramping of Project Dorothy, commissioning of proprietary mining and continued ramping of hosting revenues.
  • Gross profit improved to $1.4 million in the third quarter of 2023, as compared to $(390) thousand in the second quarter of 2023.
  • General and Administrative, exclusive of depreciation and amortization expenses, decreased by 52% to $2.7 million in the third quarter of 2023, as compared to $5.7 million in the third quarter of 2022, primarily due to cost reductions related to salaries and benefits, and reduced consulting and professional fees.
  • Stock compensation expense during the third quarter of 2023 was $595 thousand versus $890 thousand in the third quarter of 2022.
  • Net loss from continuing operations improved to $6.0 million in the third quarter of 2023 from $56.2 million in the third quarter of 2022.
  • Adjusted EBITDA positiveThe measure improved to $405 thousand in the third quarter of 2023, as compared to $(2.0) million in the second quarter of 2023 and $(2.9) million in the first quarter of 2023, a quarter over quarter improvement.

The unaudited financial statements are available online.  A presentation of this Third Quarter Update can also be found online.


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.

In addition to figures prepared in accordance with GAAP, Soluna from time to time presents alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow.  These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principle. Other companies may define these terms in different ways.

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.’


Contact Information

David Michaels

Soluna Holdings, Inc.

Chief Financial Officer

For Media Inquiries:

Sam Sova

Founder and CEO



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