Soluna (SLNH) Water Tower Research Fireside Chat Series summary

Project Dorothy expansion and blueprint

• Groundbreaking for Dorothy 2 marks the doubling of the flagship site from 50 MW to 100 MW, adding 48 MW of Bitcoin mining and a 2 MW AI facility.

• Dorothy serves as a blueprint for integrating renewable energy with computing, including Bitcoin mining, hosting, grid demand response, and AI.

• The site is shovel-ready, with construction through Q1 2025 and phased energization of 18 MW increments.

• The AI business will grow within Soluna Cloud, with future projects replicating this model and increasing AI capacity.

• Community and partner engagement highlighted at the groundbreaking, including local officials and capital partners.

Project Kati development and future plans

• Project Kati is a 166 MW facility co-located with a 300 MW wind farm, with a signed PPA and ERCOT approvals nearly complete.

• The site was relocated to accommodate larger plans, including significant AI operations alongside Bitcoin mining.

• Finalizing land leases and preparing for EPC bidding and design are the next steps.

• Project Kati will be built in two phases, with a goal to start by the end of the year and open to investment partners.

• The project is more than three times the size of Dorothy 1, reflecting the company's scaling ambitions.

Financial performance and business transformation

• Q2 2024 revenue reached $9.7 million, up from $2.1 million in Q2 2023, with adjusted EBITDA improving from a $2.0 million loss to $1.8 million profit.

• Unrestricted cash approached $10 million, a 50% increase year-over-year.

• Convertible note debt reduced from $7.7 million to $5 million, aided by share price momentum and business catalysts.

• The business is now diversified across proprietary mining, hosting, grid services, and AI/cloud, moving beyond a crypto-only focus.

• The company is materially different from last year, with a stronger financial position and diversified revenue streams.