Soluna (SLNH) Water Tower Research Virtual Insights Conference summary

Business model and operations

• Builds data centers at renewable energy sites to utilize excess power, bypassing traditional grid interconnections for faster, lower-cost access to energy.

• Operates 206 MW of capacity with a 6.3 GW development pipeline, focusing on both Bitcoin hosting and AI/HPC workloads.

• Recent shift to a co-mining model with Bitdeer, sharing mining proceeds and increasing exposure to mining economics.

• Acquired 390+ acres for Dorothy 3, a planned 300 MW AI campus, and completed vertical integration of Dorothy 1 and 2 by acquiring the powering wind farm.

• Master planning, environmental surveys, and equipment procurement underway for Dorothy 3, with marketing to customers to follow.

Financial performance and outlook

• Achieved a 60% sequential and 145% year-over-year revenue increase in the last quarter, reaching $15 million and marking five consecutive quarters of growth.

• Addition of Bitdeer project and new AI data centers expected to significantly boost revenue and profits in coming quarters.

• Each 100 MW AI data center projected to add $100–180 million in net operating income.

• AI data center revenue expected to be about three times current Bitcoin revenue within 18–24 months.

• Kati 2 targeted to go live by late 2027 or early 2028, expected to materially enhance revenue and profit profile.

Regulatory and competitive positioning

• Texas regulatory audits require all data centers in the interconnection queue to be reviewed; Kati and Dorothy projects have been conditionally accepted as base load.

• Behind-the-meter model avoids burdening the grid, uses minimal water, and funds its own infrastructure, aligning with regulatory expectations.

• 206 MW of Texas capacity already energized, with AI campuses leveraging adjacent infrastructure and wasted power.

• Strong relationships with major infrastructure funds and technological differentiators provide a competitive edge.

• Business model and execution are considered difficult to replicate, offering a sustainable advantage.