Soluna Holdings’ Project Dorothy 1 Achieves Full Capacity of 50 MW

Soluna Holdings, Inc. Update on Project Dorothy

Soluna Holdings, Inc. (SLNH), parent company of Soluna Computing, Inc., has successfully brought Project Dorothy 1 fully online. This project focuses on sustainability and enhancing renewable energy usage on the grid. The company recently completed the construction of Project Dorothy 1B and deployed 50 MW of Bitcoin mining machines for its operations, resulting in a total management capacity of 2.6 EH/s.

John Belizaire, CEO of Soluna Holdings, stated, “This summer has been incredibly productive as we ramped up Project Dorothy despite record high temperatures. As we transition into Texas’s peak wind months and cooler weather, reaching the 50 MW capacity for Project Dorothy 1 is a major milestone. Our progress at Project Dorothy 2 and Project Kati continues, alongside our efforts to improve operations and reduce SG&A expenses. We are also making strides in mitigating curtailment for renewable energy initiatives.”

Corporate Highlights:

• Full Ramp Completion: In August, the company completed the construction and full ramp-up of Project Dorothy 1, achieving a power usage effectiveness (PUE) of 1.01. Since the start of the year, Soluna has integrated over 15,630 machines, taking the total installed capacity to over 2.6 EH/s.

• Cash Flow Platform: Scaling Project Dorothy aligns perfectly with the upcoming cooler months in Texas, where the company anticipates higher wind rates and lower average power prices.

• Positive EBITDA: July marked Soluna’s first month of positive EBITDA (unaudited), and the company reduced general and administrative costs by over $1 million year-to-date compared to the previous year.

• Curtailment Consumption: Soluna successfully monetized an impressive 1,286 MWh of curtailed energy at Project Dorothy, equivalent to powering an electric vehicle for over 4.8 million miles.

• Operational Excellence: The company’s proprietary data center management software, MaestroOS™, effectively manages power and operations, with new dashboards and control systems implemented across facilities.

• Strong Cash Position: Soluna anticipates finishing the quarter with a robust cash balance.

• Active Investor Communication: The company conducted its third Ask Me Anything (AMA) session and released an updated video on Project Dorothy.

Key Company Metrics:

• Installed Hashrate: 2.6 EH/s
• Total Power Capacity: 75 MW
• Average Operating Hashrate: 2.2 EH/s in proprietary and hosting
• Average Power Cost: $30 per MWh
• Average Power Usage Effectiveness: 1.01
• Curtailed Energy Consumed: 1,286 MWh
• Bitcoin Miners Deployed: 23,655

Project Highlights:

• Project Dorothy 1A: Achieved 951 PH/s with a full ramp-up, effectively managed curtailments due to high summer demand, and expanded the operational team.

• Project Dorothy 1B: Completed construction in August with a 25 MW capacity, fully deployed proprietary mining resources.

• Project Sophie: Sold decommissioned miners generating over $1.5 million in proceeds, reached a peak hashrate of 825 PH/s and implemented optimizations for improved PUE.

• Project Kati: Nearing completion of major studies and preparing for submission for the ERCOT planning process, along with launching requests for proposals for electric and equipment partners.

This announcement may contain forward-looking statements that involve uncertainties. These statements include various expressions such as "expects," "anticipates," and "plans," among others. For a detailed understanding of risks, refer to the company’s filings.

About Soluna Holdings, Inc.

Soluna Holdings is a premier developer of green data centers that convert excess renewable energy into computing resources. Its modular and scalable data centers cater to high-demand applications such as Bitcoin mining, AI, and machine learning, providing alternatives to traditional energy storage solutions. The company aims to prevent waste from renewable energy projects, ensuring that clean energy is effectively utilized.