Seeking Alpha • Aug 22

Soluna Holdings: Buy As The Bulls Capitulate

SLNH looks like seller exhaustion occurred last week. The earnings report wasn't pretty, but one-time factors influenced the miss. The stock is extremely cheap for long-term holders and believers in the model. Bitcoin-related stocks have been on a wild ride in recent months. The coin itself remains fairly weak, as rally attempts are having varying amounts of success, and the miners are following suit. Some are seeing bigger rips than others, whether based on short interest, technicals, or fundamental factors. However, one Bitcoin-related stock hasn't participated, and that's Soluna Holdings (SLNH). I've profiled Soluna before and at the time, I said I liked Soluna more than the other Bitcoin-related stocks I looked at. That was back in February, and let's just say a lot has changed in the interim. Bitcoin went into full meltdown mode since then, and Soluna has been obliterated. It's worth taking a look, then, to see if the thesis for Soluna has fallen apart, or if this beat down is a chance to buy it cheaply. Let's start with the chart. StockCharts There's no way to sugarcoat this, so I won't; Soluna has been destroyed. Before we look at this chart, I'll note that when I post a chart to my subscribers, I always note levels to place a stop loss as a way to limit risk. What you don't want is to buy something and then ride it down 60% or 70%, which is what Soluna has done since early this year. We must always manage risk, and doing so can help avoid bag holding. Now, if we look at Soluna's price action we see a stock that is firmly in a downtrend. This isn't the kind of chart I would normally want to buy because there is no near-term catalyst for an up move. When I look for stocks for my subscribers or myself, I want a stock that is near support or some other sort of catalyst to move higher. I don't see that with Soluna, particularly since it reported earnings last week and was destroyed by investors. However, for a longer-term hold (as opposed to a trade), I think the value proposition here is quite compelling. More on that in a bit but let's finish up the chart discussion first. I've highlighted on the price chart the positive divergence I'm seeing when connecting the June and August lows. That essentially means price is moving down while the momentum indicators are moving up, and that's important because we can use divergences to spot tops and bottoms. Divergences are not guarantees, but they often portend trend changes. In this case, the trend is down so if this positive divergence is right, the downtrend may be at or near exhaustion. The lines I've drawn on the 14-day RSI and PPO are the signs you want to see for a positive divergence. Momentum is moving steadily higher despite very weak price action, and as mentioned, that can often mean the trend is changing. We'll see, but this has the look of seller exhaustion. This is particularly true given the enormous tail on last Thursday's candle. The stock finished Thursday something like 35% higher than the low of the day, and I'll be honest, I'm not sure I've seen a tail that huge on anything before. That means the stock was obliterated but found buyers, and in a big way. In concert with the positive divergences, we just might have seen the bottom printed following the earnings report. Let's now take a look at the fundamentals and that value case I mentioned earlier. Still growing despite near-term challenges As with most Bitcoin-related stocks, Soluna is still very much in its growth investment stage. That requires some faith as an investor, because it isn't like we can value the company on earnings, because there aren't any. Still, if you believe in the long-term prospects of the business, it's cheaper now than it has ever been. If you don't, well, I suspect you wouldn't still be reading this. Soluna reckons it has something like a $1 billion revenue opportunity, which is based on a 2GW total market, and various other assumptions about Bitcoin price and other factors. Given the company's at a run rate of ~$35 million today, a billion dollars seems extremely ambitious, so I'll ignore that for now. The point, however, is that Soluna's model can work for a variety of applications, just one of which is Bitcoin mining. That means the runway is very long and while I'm not sure about a billion dollars of revenue, I do think Soluna can be many times the size it is today. There are nearly endless applications to companies needing computing power for things like pharmaceutical research, video processing, and of course, crypto mining. Soluna is crypto-heavy today but it doesn't have to stay that way, and that's part of the appeal. Investor presentation Second quarter results were challenged to say the least, as the company continues to grapple with lower Bitcoin pricing. We can see revenue actually declined against Q1, which I suspect is a big reason why the stock was destroyed. This is a growth story, so if there is no growth, there is no story. Now, revenue was 5.2X what it was in the year-ago period, so that's certainly representative of growth, but know that if you own this stock and the company reports declining revenue again, look out below. The reaction to the Q2 report was Wall Street signaling zero confidence in this company's ability to execute, and if it happens again, it could get cut in half from these levels very easily. The good news on the revenue front is that revenue declined much more slowly than the price of Bitcoin and that there were one-time factors that produced lower revenue, such as the outage at the Marie facility. Still, we need to see more than this for Q3. Investor presentation On the margin front, the company highlights cash contribution on an adjusted basis was about flat to the past two quarters despite lower Bitcoin pricing. That's fine, but adjusted EBITDA was well off the prior two quarters. Soluna says it's due to lower Bitcoin pricing and higher SG&A costs and growth investments, but again, it appears to me Wall Street isn't believing in the story. The opportunity for us as investors is to take the other side of that because if - and it's a big 'if' at this point - Soluna can pull it together, the stock is extremely cheap. In other words, the stock is being priced as though there is massive execution risk, so if the company does come through, the reward should be huge. Investor presentation If you want to ignore the noise of Bitcoin pricing, this is a very useful way to view the company's growth. BTC-equivalent mining continues to soar, up 18% sequentially in Q2 and 7.5X the prior year comparable period. Average hashrate was 39X year-over-year and +25% sequentially as well, so there's a lot to like here. There are a lot of catalysts for this growth to continue as the company operationalizes new facilities and optimizes existing facilities, so all looks good there. The problem so far, however, is that this isn't translating directly to financial success, which is why the stock is $3. Investor presentation The company saw a peak of 1 EH/s in Q2, although the average hashrate was about two-thirds of that. Going forward, after the company's Dorothy facility is up and running, it believes it can have 2.5 EH/s, which would go a long way towards boosting revenue and margins. Computing power is all about scale and Soluna hasn't achieved scale yet. All indications are that it will - or that it at least has a good chance to - but for now, this takes some faith. I'll say this; if Soluna can get to 2.5 EH/s, the stock should be much higher than it is today, because I think it's extremely cheap without any future growth. About that valuation… I've mentioned the valuation a few times, so let's dig in and see what I'm on about. The first thing about the valuation I want you to know is that one big wildcard with Soluna is the share count. Like many other growth-stage companies, Soluna has been diluting shareholders in order to raise capital. The company's share count is up ~50% just since the end of 2020, so the struggle is real for shareholders. That means that Soluna's earnings/revenue/whatever else must increase by 50% just to breakeven on a per-share basis. So long as Soluna continues to dilute shareholders, this will be an uphill battle. The balance sheet is pretty clean at this point because Soluna is diluting shareholders to fund itself, rather than taking on lines of credit, long-term debt, etc. I generally don't like companies that dilute shareholders into oblivion, so that's something you must make peace with if you're going to own Soluna. Now, Soluna has no earnings so let's instead take a look at the company's value through price-to-tangible book value and price-to-sales. We'll begin with the former. TIKR, P/TBV ratio Soluna, following its shellacking last week, is trading for 72% of its tangible book value. Now, traditional book value is - in my opinion - a pointless metric because companies can load their balance sheet up with goodwill and other "assets" that aren't actually worth anything. However, tangible book value means there are tangible assets (hence the name) that could be monetized. This gives a true sense of the value of the company's assets, and Soluna is trading 28% below its theoretical liquidation value. That doesn't by itself make the stock a buy, but it sure is interesting if you like the stock long-term. The average P/TBV multiple in the past 12 months is 3.6X, and we're at 0.7X today. On a price-to-sales basis, the stock is also as cheap as it has ever been. Today's multiple is 1.7X, versus an average in the past year of 8.9X. TIKR, P/S ratio

Seeking Alpha • Jul 02

Soluna: The Business Of Turning Wasted Energy Into Cash Via Bitcoin Isn't Sustainable

Soluna is in the business of buying curtailed renewable energy to provide energy-intensive computing services for profits such as using curtailed energy to mine Bitcoin. Soluna's business model might backfire as the curtailed renewable energy subsector is expected to shrink as great efforts (e.g. CAISO) are invested to solve the curtailment problem. We explained the drivers of curtailment of energy, how curtailment can be solved, and Soluna's possibility of conflict of interest in this matter. According to Soluna's cost structure, sourcing curtailed renewable energy doesn't provide it with competitive advantage in cost as Soluna's energy cost per BTC mined is about 2x more than MARA and IREN. Based on 2023 expected capacity, Soluna is priced fairly relative to other miners such as MARA, RIOT, and IREN. Introduction We're currently on the hunt for alpha in the Bitcoin mining sector. Since May 2021, we've been warning investors about a coming bear market that was depicted by Bitcoin's (BTC-USD) decade-old cycle. More specifically, we discouraged investors from taking positions in Bitcoin mining companies as Bitcoin mining companies are more volatile than Bitcoin and possess additional risks such as insolvency. We've recently updated our outlook on Bitcoin and expect Bitcoin to end its bear market by end of 2022 before entering its recovery phase that spans another 1 to 2 years. Therefore, this will be a good time to seek alpha in the Bitcoin mining sector. For instance, we found that Iris Energy (IREN) has hard assets in excess of total liability and is valued more than its market cap. This implies that investors are getting its Bitcoin mining business for free. We explained that this is because Bitcoin mining is a loss-making business given Bitcoin's current price and that the market is expecting the losses to eat into IREN's balance sheet. Other key insights that make IREN an appealing company to invest in are also discussed. In this article, we're going to examine how Soluna Holdings (SLNH) is positioning itself in the Bitcoin mining sector and whether it offers investors with sufficient investment value proposition. Soluna's Business: Creating Economies In Wasted (Curtailed) Energy Subsector Soluna's business is a very straightforward one. It is to create an economy in the curtailed (wasted) renewable energy subsector. Soluna locates sites with curtailed energy (that meets its criteria such as site operating costs between $0.025 to $0.026 per kWh) and then build facilities around them to produce marketable products and services (Batchable Computing). Cost Control Benchmark (Soluna) Although Batchable Computing may include computing applications such as scientific computing, artificial intelligence, and cryptocurrency mining, 100% of Soluna's revenue is still derived from Bitcoin mining. Moreover, Soluna's 2023 guidance indicates that Soluna will not be pivoting to other batch computing applications yet as it is still focused on the capacity to mine Bitcoin. We speculate that Soluna started with Bitcoin mining because Bitcoin mining has a relatively lower barrier to entry. That being said, we highly value Soluna's ability to pivot to other types of batchable computing applications. We've also mentioned this feature when examining IREN. This idea was inspired by Kevin O'Leary when he mentioned that he invested in hydropower facilities to mine Bitcoin but is open to pivoting to host data centers for Microsoft should Bitcoin mining become unprofitable. Therefore, Soluna is currently creating an economy in the curtailed energy subsector by buying curtailed renewable energy to mine Bitcoin and then sell Bitcoin for cash. Providers of the curtailed renewable energy get to operate at scale and improve the visibility of earnings while Soluna gets to profit from the difference between the mining cost and Bitcoin's price. Soluna to hedge against BTC downturn (Soluna) Soluna emphasizing its actual targeted sectors during monthly presentations (Soluna) Threat to Soluna's Business Sustainability As mentioned above, Soluna's business model is built on acquiring curtailed renewable energy. But we find that the sustainability of this business model is under threat. Curtailment of renewable energy refers to renewable energy generators not operating at 100% capacity. Curtailment happens for 2 main reasons, system-wide oversupply, and local transmission constraints. System-wide oversupply refers to the situation where the supply of renewable energy exceeds demand such that renewable energy generators are not required to operate at 100%. On the other hand, local transmission refers to the lack of infrastructure to deliver electricity from the location of production to the location of demand. Understanding the reasons for curtailment is crucial because a large amount of effort has been invested to reduce the curtailment of renewable energy. As a result, the curtailment of renewable energy has shrunk by 5% in 2021. California Independent System Operator (CAISO) listed 8 ways to reduce the curtailment of renewable energy. For instance, the adoption of electric vehicles is expected to greatly reduce the curtailment of renewable energy. The US is currently targeting 50% of all new vehicles sold to be electric vehicles by 2030. Therefore, as more efforts are being invested to further reduce the curtailment of renewable energy, Soluna's curtailed renewable energy business model will be under threat. CAISO's 8 Solutions to Curtailment (CAISO) Other Unpleasantries On top of the threats to the sustainability of Soluna's business model, we do not find any competitive advantage when compared to other Bitcoin mining companies. Soluna prides itself on low-cost energy. According to Soluna, sourcing energy from curtailed renewable energy can pass on energy cost savings to customers as much as a 75% cost reduction in computing when compared to AWS (Amazon's (AMZN) cloud services). But upon inspection, we did not observe such material reduction in energy cost. Soluna's electricity cost per bitcoin mined stands at $14,115 in 2022Q1 and $12,657 in 2021Q4. During the 2 periods, Soluna (proprietary) mined 189.23 bitcoins and 111.95 bitcoins respectively while incurring a total electricity cost of $2.671mil and $1.417mil respectively. Soluna's electricity cost increases further when the hosting segment is considered. By referring to Table 1, we can observe that sourcing curtailed renewable energy doesn't provide a competitive advantage in terms of cost. Table 1. 2022Q1 Electricity Cost Comparison Table Company BTC Mined Total Electricity Cost Electricity Cost per bitcoin Mined MARA 1,259 $7.86mil $6,243 RIOT 1,355 $19mil $14,022 IREN 357 $3mil $8,403 SLNH 189.23 (Prop) 36.43 (Host) $2.671mil (Prop) $1.156mil (Host) $14,115 (Prop) $31,732 (Host) When other operating and business costs are considered, we estimate Soluna's total mining cost per bitcoin to be approximately $72K and $60K in 2022Q1 and 2021Q4 respectively. We estimate Soluna's 2022Q1 total mining cash cost per bitcoin to be $41,624. At $21,000 per BTC, Soluna would be operating at a loss of $50K or $20K cash loss per BTC. As of 2022Q1, Soluna only has approximately $3mil in cash. At this rate, Soluna will deplete its cash holdings and might need to resort to severe shareholder dilution. Although total liability is only 24% of total assets, Soluna has $43mil of intangible assets which we believe is the Strategic Pipeline Contract or the letters of intent (LoIs) signed in 2021Q4. This figure wasn't present in the 2021Q3 report. This contract is valued at $45mil. However, we couldn't determine its value for ourselves. If we do not consider this contract, Soluna's liability is 35% of total liability, which is still okay. But the problem remains, that Soluna lacks liquidity. Moving on, Soluna is expected to achieve only 4 EH/s of mining capacity by 2023Q1. Comparatively, Marathon Digital Holdings (MARA), Riot Blockchain (RIOT), and Iris Energy are expected to achieve 23.3 EH/s, 12.8 EH/s, and 15 EH/s respectively within a similar timeframe. We can see that Soluna's expected mining capacity severely trails other Bitcoin miners. Mining capacity is important because it determines how many bitcoins a miner is capable of mining.

Kar Tanesi Skoru
Değerleme	1/6
Gelecekteki Büyüme	2/6
Geçmiş Performans	0/6
Finansal Sağlık	5/6
Temettüler	0/6

Tarihsel hisse senedi fiyatları
Güncel Hisse Fiyatı	US$1.26
52 Haftanın En Yüksek Seviyesi	US$5.14
52 Haftanın En Düşük Seviyesi	US$0.59
Beta	5.09
1 Aylık Değişim	6.78%
3 Aylık Değişim	-24.55%
1 Yıllık Değişim	16.67%
3 Yıllık Değişim	-73.89%
5 Yıllık Değişim	-99.38%
Halka arzdan bu yana değişim	-99.67%

	SLNH	US Software	US Pazar
7D	5.9%	-0.3%	-0.1%
1Y	16.7%	-11.6%	11.9%

SLNH volatility
SLNH Average Weekly Movement	13.4%
Software Industry Average Movement	9.4%
Market Average Movement	6.8%
10% most volatile stocks in US Market	15.1%
10% least volatile stocks in US Market	2.9%

SLNH temel i̇stati̇sti̇kler
Piyasa değeri	US$308.18m
Kazançlar(TTM)	-US$92.36m
Gelir(TTM)	US$42.08m

En son kazanç raporundan temel karlılık istatistikleri (TTM)
SLNH gelir tablosu (TTM)
Gelir	US$42.08m
Gelir Maliyeti	US$17.45m
Brüt Kâr	US$24.63m
Diğer Giderler	US$116.98m
Kazançlar	-US$92.36m

Hisse başına kazanç (EPS)	-0.38
Brüt Marj	58.53%
Net Kâr Marjı	-219.49%
Borç/Özkaynak Oranı	15.6%

Veri	Son Güncelleme (UTC saati)
Şirket Analizi	2026/09/20 07:30
Gün Sonu Hisse Fiyatı	2026/09/18 00:00
Kazançlar	2026/06/30
Yıllık Kazançlar	2025/12/31

Paket	Veri	Zaman Çerçevesi	Örnek ABD Kaynağı ^*
Şirket Finansalları	10 yıl	Gelir tablosu Nakit akış tablosu Bilanço	SEC Form 10-K SEC Form 10-Q
Analist Konsensüs Tahminleri	+3 yıl	Finansal tahminler Analist fiyat hedefleri	Analist Araştırma Raporları Blue Matrix
Piyasa Fiyatları	30 yıl	Hisse senedi fiyatları Temettüler, Bölünmeler ve Eylemler	ICE Piyasa Verileri SEC Form S-1
Sahiplik	10 yıl	En büyük hissedarlar İçeriden öğrenenlerin ticareti	SEC Form 4 SEC Form 13D
Yönetim	10 yıl	Liderlik ekibi Yönetim Kurulu	SEC Form 10-K SEC Form DEF 14A
Önemli Gelişmeler	10 yıl	Şirket duyuruları	SEC Form 8-K

Soluna Holdings (SLNH) Hisse Özeti

Ödüller

Risk Analizi

Analyst Price Targets

AI Data Centers Using Underused Renewable Power Will Reshape This Long-Term Opportunity

Top Community Narratives

Soluna: Powering Renewable AI, Funding the Risk

Top Community Narratives

Soluna: Powering Renewable AI, Funding the Risk

Top Analyst Narratives

AI Data Centers Using Underused Renewable Power Will Reshape This Long-Term Opportunity

Soluna Holdings, Inc. Rakipler

Xunlei

BitFuFu

CS Disco

Digi Power X

Fiyat Geçmişi ve Performans

Son Haberler & Güncellemeler

AI Data Centers Using Underused Renewable Power Will Reshape This Long-Term Opportunity

Soluna Holdings Secures Conditional Base Load Position For Project Dorothy's 100 MW In ERCOT Batch Zero

CEO & Director recently bought US$60k worth of stock

Soluna Holdings, Inc., Annual General Meeting, Oct 16, 2026

Second quarter 2026 earnings released: US$0.16 loss per share (vs US$0.69 loss in 2Q 2025)

Soluna: Powering Renewable AI, Funding the Risk

Recent updates

AI Data Centers Using Underused Renewable Power Will Reshape This Long-Term Opportunity

Soluna Holdings Secures Conditional Base Load Position For Project Dorothy's 100 MW In ERCOT Batch Zero

CEO & Director recently bought US$60k worth of stock

Soluna Holdings, Inc., Annual General Meeting, Oct 16, 2026

Second quarter 2026 earnings released: US$0.16 loss per share (vs US$0.69 loss in 2Q 2025)

Soluna: Powering Renewable AI, Funding the Risk

Soluna Holdings, Inc. Announces Appointment of Ryan Carver to Chief Development Officer, Effective July 16, 2026

Soluna Holdings, Inc. to Report Q2, 2026 Results on Aug 13, 2026

Soluna Holdings Stock Jumps on Full Control of Renewable Data Centers and AI Expansion

Soluna Holdings (SLNH) Stock Looks Rich Even After The Project Kati 2 Joint Venture

CFO, Director & Treasurer recently bought US$163k worth of stock

Soluna Holdings, Inc. (NasdaqCM:SLNH) acquired remaining 49% stake in Project Dorothy 1B from Navitas Global LLC for $8.8 million.

First quarter 2026 earnings released: US$0.21 loss per share (vs US$0.88 loss in 1Q 2025)

Soluna Holdings Expands Renewable Power and Data Center Capacity While Facing Stock Pressure

Soluna Holdings, Inc Announces Notice of Non-Compliance with Nasdaq Listing Rule

Full year 2025 earnings released: US$1.84 loss per share (vs US$11.81 loss in FY 2024)

New minor risk - Market cap size

Take Care Before Jumping Onto Soluna Holdings, Inc. (NASDAQ:SLNH) Even Though It's 41% Cheaper

Soluna Holdings, Inc. Announces Executive Changes

Soluna Holdings, Inc. (NASDAQ:SLNH) Stock's 34% Dive Might Signal An Opportunity But It Requires Some Scrutiny

Soluna Holdings, Inc. Announces November 2025 Project Site-Level Operations, Developments, and Updates

Soluna Holdings, Inc. has completed a Follow-on Equity Offering in the amount of $31.987936 million.

Soluna Holdings, Inc. has filed a Follow-on Equity Offering in the amount of $31.987936 million.

Health Check: How Prudently Does Soluna Holdings (NASDAQ:SLNH) Use Debt?

Third quarter 2025 earnings released: US$0.89 loss per share (vs US$1.29 loss in 3Q 2024)

Soluna Holdings, Inc. (NASDAQ:SLNH) Stocks Shoot Up 28% But Its P/S Still Looks Reasonable

Soluna Holdings, Inc. Appoints Agnes Budzyn to Board of Directors

Second quarter 2025 earnings released: US$0.49 loss per share (vs US$2.97 loss in 2Q 2024)

Soluna Holdings, Inc. Announces Executive Changes, Effective August 21, 2025

Soluna Holdings, Inc. announced that it has received $20 million in funding from Spring Lane Management, LLC

Soluna Holdings, Inc. has completed a Follow-on Equity Offering in the amount of $4.999704 million.

Soluna Holdings, Inc. Announces June 2025 Project Site-Level Operations, Developments, and Updates

Soluna Holdings, Inc. (NASDAQ:SLNH) Surges 36% Yet Its Low P/S Is No Reason For Excitement

Soluna Holdings, Inc., Annual General Meeting, Aug 18, 2025

Soluna Holdings, Inc. has filed a Follow-on Equity Offering.

First quarter 2025 earnings released: US$0.63 loss per share (vs US$2.62 loss in 1Q 2024)

Soluna Holdings, Inc. Receives Written Notice from Nasdaq Regarding Minimum Bid Price Requirement

Soluna Holdings, Inc. has filed a Follow-on Equity Offering in the amount of $3.75 million.

Full year 2024 earnings released: US$10.08 loss per share (vs US$27.79 loss in FY 2023)

Soluna Powers Up Project Dorothy 2, to Increase Bitcoin Hosting Capacity by 60% to 123 Mw

New major risk - Share price stability

New major risk - Market cap size

Investors Don't See Light At End Of Soluna Holdings, Inc.'s (NASDAQ:SLNH) Tunnel And Push Stock Down 27%

Soluna Holdings, Inc. (NASDAQ:SLNH) Looks Inexpensive After Falling 31% But Perhaps Not Attractive Enough

Soluna Holdings, Inc. Appoints Ernest Popescu to Advisory Board

New major risk - Financial position

Third quarter 2024 earnings released: US$0.93 loss per share (vs US$4.88 loss in 3Q 2023)

Soluna Holdings, Inc. (NASDAQ:SLNH) Stock Catapults 29% Though Its Price And Business Still Lag The Industry

Soluna Holdings, Inc.'s (NASDAQ:SLNH) Price Is Right But Growth Is Lacking After Shares Rocket 29%

Soluna Holdings, Inc. announced that it expects to receive $25 million in funding from Yorkville Advisors Global LP

Second quarter 2024 earnings released: US$2.38 loss per share (vs US$8.02 loss in 2Q 2023)

Soluna Holdings, Inc. announced that it has received $30 million in funding from Spring Lane Management, LLC

Soluna Holdings, Inc. announced that it expects to receive $30 million in funding from Spring Lane Management, LLC

First quarter 2024 earnings released: US$1.87 loss per share (vs US$8.17 loss in 1Q 2023)

Soluna Holdings, Inc., Annual General Meeting, May 30, 2024