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Investing.com - H.C. Wainwright initiated coverage on Soluna (NASDAQ:SLNH), a micro-cap company with $13.02M market capitalization, with a Neutral rating on Wednesday, citing concerns over customer acquisition and funding for high-performance computing aspirations. The company’s next earnings report is expected on August 14.
The renewable energy datacenter developer builds modular facilities at wind and solar generating sites, utilizing power that would otherwise be curtailed at an average cost of $31 per MWh, according to the research firm. InvestingPro data reveals the company is quickly burning through cash, with a concerning current ratio of 0.33.
Soluna, headquartered in Albany, NY, supports three revenue streams: bitcoin mining and hosting, planned high-performance compute (HPC) and AI colocation services, and ERCOT demand response payments. The company generated revenue of $31.41M in the last twelve months, though with a significant EBITDA loss of -$39.51M.
H.C. Wainwright noted that while Soluna’s renewable-powered HPC compute platform is ready, the dedicated campuses positioned to capture strong demand still require financing and construction.
The firm indicated it would continue following Soluna’s progress, stating that this commitment "stands as proof of our optimistic view" despite the initial Neutral rating.
In other recent news, Soluna Holdings, Inc. reported an 80% revenue growth, reaching $38 million in 2024, and achieved positive cash flow from its Bitcoin hosting business. The company has operationalized its Project Dorothy 1A and 1B, and Project Dorothy 2 is now energized with an expected capacity of 48 MW by the end of 2025. Additionally, Soluna launched Demand Response Services, generating $2.1 million in new revenue. Soluna has also expanded its Project Dorothy 2 data center and increased its power pipeline to 2.8 GW, supported by a $20 million investment from Spring Lane Capital. This investment will help launch Project Kati 1, with construction starting in the third quarter of 2025. The company renewed and expanded its partnership with Compass Mining, deploying approximately 13 MW of computing capacity across Project Dorothy 1 and 2. Furthermore, Soluna expanded its hosting agreement with Blockware, adding 3 MW of capacity at Project Dorothy 2, increasing Blockware’s total contracted capacity to 8 MW. In a separate development, Soluna announced a public offering to raise approximately $5 million in gross proceeds by offering shares and warrants.
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