NEW YORK - Soluna Holdings, a company specializing in clean energy-powered bitcoin mining and data center infrastructure, reported a significant financial turnaround in the third quarter of 2023, achieving its first-ever gross profit and a substantial increase in revenue. This growth comes amid the successful completion and full operation of its Project Dorothy sites.
CEO John Belizaire announced on Wednesday that despite the summer heat challenges in Texas and Kentucky, Soluna's operational achievements included an increase in total installed hashrate to 2.6 exahashes per second (EH/s) with the deployment of over 23,600 bitcoin miners across all sites. The company maintained an average hashrate of 2.4 EH/s.
The financial results for Q3 2023 were noteworthy:
- Revenue soared by 176% to $5.8 million, up from $2.1 million in the second quarter.
- The company experienced its first positive Adjusted EBITDA since Q2 2022.
- Cash balance improved significantly to $5.6 million as of September 30, 2023, from $1.1 million at the end of 2022.
- Gross profit marked a significant improvement compared to a loss of $390 thousand in Q2.
- General and Administrative expenses decreased, leading to a net loss improvement from continuing operations to $6.0 million in Q3 from $56.2 million in the same quarter of the previous year.
Looking ahead, Soluna is not resting on its laurels. The company completed pre-registration for Ancillary Services with ERCOT, allowing Project Dorothy to serve as a grid resource. Additionally, Soluna launched "Helix", an initiative aimed at developing a data center specifically for artificial intelligence (AI) training workloads, which is expected to be part of the upcoming Project Dorothy 2 set to start in the first quarter of 2024.
Belizaire expressed optimism about the company's trajectory, emphasizing upcoming projects such as Dorothy 2 and Kati and the strategic focus on AI initiatives. With these developments, Soluna Holdings appears poised for continued growth as it diversifies its revenue streams and strengthens its position within the clean energy and technology sectors.
InvestingPro Insights
As Soluna Holdings continues to make strides in the clean energy and technology sectors, its financial performance has also seen a positive uptick. The company's stock price experienced a 14% increase in the last quarter, and its market cap reached a noteworthy $100 million as of Q3 2023. Additionally, Soluna's P/E ratio, a key indicator of valuation, stands at 15.7, which is below the industry average of 20.3, potentially signaling an undervalued stock.
InvestingPro Tips suggest that investors should closely monitor Soluna's upcoming projects like Dorothy 2 and Kati. These initiatives could significantly boost the company's revenue and further strengthen its market position. Additionally, keeping an eye on Soluna's P/E ratio compared to the industry average could provide valuable insights into the company's valuation. InvestingPro offers an additional 20+ tips and insights on Soluna Holdings and other companies, further aiding investors in their decision-making process.
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