Soluna Holdings Announces September Site Level Financials – – Press Release

Improved Energy Costs and Increased Cash Contribution Margin from Summer Lows; Improved liquidity to support Dorothy’s power supply

Soluna Holdings, Inc. (“SHI” or the “Company”), SLNHThe parent company of Soluna Computing, Inc. (“SCI”), a developer of green data centers for cryptocurrency mining and other intensive computing, today announced the release of its September site-level financials.

Soluna Holdings CEO Michael Toporek stated, “Soluna continues to deliver healthy hash rates and margins despite low BTC prices and energy market volatility. We have taken important steps to improve our near-term liquidity as we focus on the anticipated energy supply of Project Dorothy to double our existing operational footprint.”

Summary of the main highlights:

• Flat BTC production despite volatile market

  • The BTC equivalent mined per day fell by 3%, even though the average 7-day network hashrate increased by ~15% from early August to late September

  • The peak hashrate stayed above 1EH/s

• Cash contribution margins improved from July and August lows

  • September margins improved despite ~11% drop in average BTC price

  • ~30% Consolidated Cash Margins despite low BTC environment and energy costs above historical averages

    • 35% Cash Contribution Prop Mining Margins slightly offset by weaker hosting margins

• 10 MW hosting contract with Marie Profitabler

  • The contract has been restructured to better respond to energy fluctuations

  • Hosting margins in September were 35% compared to (15%) in August

A presentation and related video are available on the company’s website here. In conjunction with the table below, see the reconciliation of non-GAAP results of operations to the closest comparable GAAP measures attached to the presentation available on the Company’s website.

Summary of sales & contribution margin: