In a recent filing with the Securities and Exchange Commission, Soluna Holdings, Inc. (NASDAQ:SLNH) disclosed that its Chief Accounting Officer, Jessica L. Thomas, sold a significant number of shares. The transactions, dated November 19, 2024, involved the sale of 3,300 shares of the company's 9.0% Series A Cumulative Perpetual Preferred Stock.
The shares were sold in two separate transactions. The first transaction involved 873 shares sold at an average price ranging from $12.50 to $12.8427 per share, and the second involved 2,427 shares sold at an average price between $11.50 and $12.12 per share. The total value of these sales amounted to $39,527.
Following these transactions, Thomas retains direct ownership of 6,700 shares of Soluna Holdings' preferred stock.
In other recent news, Soluna Holdings has experienced a series of significant developments. The company reported a 362% increase in Q2 2024 revenue and secured substantial funding, including a $25 million Standby Equity Purchase Agreement with Yorkville Advisors Global L.P., and $30 million for the expansion of its flagship data center, Project Dorothy 2. Soluna Holdings also increased its credit facility to $13.75 million for its subsidiary, Soluna Cloud, and a $34 million cloud services agreement with Hewlett Packard Enterprises is expected to generate up to $80 million in revenue over the next three years.
Soluna Holdings' stockholders have voted in favor of both the issuance of common stock that may exceed Nasdaq's exchange cap and the modification of the company's stock incentive plan. The company has also announced Project Rosa, a green data center project offering up to 187 megawatts of capacity, powered by an adjacent 240 MW wind farm in Texas. In a shift in strategy, Soluna Holdings decided against proceeding with prepaid equity advances under a previously executed Standby Equity Purchase Agreement with YA II PN, LTD, opting instead to adhere to the original terms.
These recent developments, advised by Northland Capital Markets, BitOoda Technologies, and Imperial Capital, are part of Soluna Holdings' ongoing efforts to expand its green data center and hosting services. The company's various projects, including Project Dorothy 2, Project Sophie, and Project Kati, are making significant progress. As part of its ongoing expansion efforts, Soluna Holdings has appointed John Tunison as its new Chief Financial Officer.
InvestingPro Insights
The recent insider sale by Soluna Holdings' Chief Accounting Officer comes at a time when the company is facing several financial challenges, as revealed by InvestingPro data. Soluna's market capitalization stands at a modest $28.21 million, reflecting its small-cap status.
InvestingPro Tips highlight that Soluna is "quickly burning through cash" and that its "short term obligations exceed liquid assets." These factors may have influenced the insider's decision to sell shares. Additionally, the stock "has fared poorly over the last month," with a 1-month price total return of -22.35%, indicating recent market pessimism.
Despite these challenges, Soluna has shown impressive revenue growth, with a 163.5% increase over the last twelve months as of Q3 2024. However, this growth hasn't translated into profitability, as the company is "not profitable over the last twelve months," according to another InvestingPro Tip.
The company's price-to-book ratio of 1.35 suggests that the stock might be trading close to its book value. However, investors should note that Soluna "does not pay a dividend to shareholders," which may impact its attractiveness to income-focused investors.
For readers interested in a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into Soluna's financial health and market position.
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