Soluna Holdings' CEO John Belizaire Addresses Shareholders in Open Letter, Publishes Earnings Power Highlighting Path to Profitability
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.
A longer version of the letter as well as an earnings power
presentation can be found on Soluna’s website.
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
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.
John Belizaire CEO 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.’
version on businesswire.com: https://www.businesswire.com/news/home/20230621322670/en/
Sam Sova Founder and CEO SOVA Sam@teamsova.biz
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