H.C. Wainwright reiterates Neutral rating on Soluna stock amid growth

Published 25/08/2025, 12:32
H.C. Wainwright reiterates Neutral rating on Soluna stock amid growth

Investing.com - H.C. Wainwright has maintained its Neutral rating on Soluna (NASDAQ:SLNH), currently trading at $0.48, following the company’s recent quarterly update, according to a research note released Monday. The stock has experienced significant volatility, with a beta of 3.7 and a steep 77% decline year-to-date.

The research firm noted that Soluna delivered sequential improvement in the second quarter of 2025 while continuing to advance its operational scale-up efforts. According to InvestingPro data, the company faces challenges with rapidly depleting cash reserves and a concerning current ratio of 0.35. The company has successfully onboarded initial customers at its Dorothy 2 facility and secured financing for its Kati 1 project.

H.C. Wainwright observed strengthened customer interest in Soluna’s services, particularly from larger companies that are prioritizing proven operators capable of delivering scale. This trend was exemplified by the mid-August announcement that Mike Novogratz’s team had agreed to deploy 48MW at the Kati 1 facility. InvestingPro subscribers have access to 12 additional key insights about Soluna’s financial health and growth prospects.

Despite these positive developments, H.C. Wainwright analyst Kevin Dede maintained a Neutral stance on the stock. The research firm has not yet offered a price target for Soluna shares.

The rating comes as Soluna continues to execute on its growth strategy in the cryptocurrency mining infrastructure space, balancing operational expansion with customer acquisition efforts.

In other recent news, Soluna Holdings, Inc. reported an impressive 80% revenue growth, reaching $38 million in 2024, and achieved positive cash flow from its Bitcoin hosting business. The company has fully operationalized its Project Dorothy 1A and 1B, with Project Dorothy 2 now energized and expected to expand its hosting capacity by 64%, reaching 48 MW by the end of 2025. Additionally, Soluna launched Demand Response Services, contributing $2.1 million in new revenue. In a related development, Soluna expanded its Project Dorothy 2 data center and increased its power pipeline to 2.8 gigawatts (GW), with $20 million secured from Spring Lane Capital to initiate Project Kati 1. Spring Lane Capital has committed up to $100 million to support Soluna’s project pipeline. Furthermore, Soluna announced a $5 million public offering, issuing 9,090,909 shares of common stock and accompanying warrants. The company also held its annual meeting, where shareholders approved a reverse stock split and elected two directors to serve until 2028. Lastly, H.C. Wainwright initiated coverage on Soluna with a Neutral rating, highlighting concerns over customer acquisition and funding for its high-performance computing goals.

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