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Soluna Holdings signs PPA to boost renewable computing

EditorNatashya Angelica
Published 05/23/2024, 12:36 AM
SLNH
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ALBANY, N.Y. - Soluna Holdings, Inc. (NASDAQ: SLNH), a developer of green data centers, has entered into a Power Purchase Agreement (PPA) with EDF (EPA:EDF) Renewables and Masdar for a new project named Kati, based in Texas. This venture marks an expansion in Soluna's portfolio, aimed at enhancing its renewable computing capacity.

The agreement for Project Kati, Soluna's second such initiative in Texas, will see the development of a renewable computing data center co-located with a wind facility owned by EDF Renewables and Masdar.

The project will progress in two phases, each expected to contribute 83 megawatts (MW) of renewable energy capacity, culminating in a total of 166 MW upon completion. This capacity will support high-performance computing applications, including artificial intelligence (AI).

The signing of the PPA confirms Soluna's ownership of Project Kati and reinforces its commitment to the renewable energy sector. The company is taking steps to secure land leases and meet ERCOT planning requirements, which are key to the project's development.

John Belizaire, CEO of Soluna Holdings, expressed enthusiasm for the growth opportunities and sustainable energy solutions that Project Kati represents. The project is named after Hungarian scientist Kati Kariko, whose research contributed significantly to the development of mRNA-based vaccines.

Soluna, known for its digital infrastructure that harnesses surplus renewable energy for computing resources, operates data centers that support applications such as Bitcoin mining and generative AI. The company utilizes its proprietary software, MaestroOS™, to offer cost-effective and sustainable computing while aiming to energize a greener grid.

This announcement is based on a press release statement and contains forward-looking statements under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Soluna Holdings has cautioned that these statements are subject to risks and uncertainties. For additional information, Soluna's filings with the Securities and Exchange Commission can be referenced.

InvestingPro Insights

As Soluna Holdings, Inc. (NASDAQ: SLNH) forges ahead with its renewable energy initiatives, the company's financial metrics and market behavior offer a mixed picture. With a market capitalization of just under $10 million, Soluna's size reflects the high-growth but often volatile nature of the green tech sector. The company's Price / Book ratio, standing at 0.46 as of the last twelve months up to Q1 2024, suggests that the stock may be trading at a discount relative to its book value - a point of interest for value-oriented investors.

InvestingPro data also highlights Soluna's robust revenue growth of 36.84% over the last twelve months as of Q1 2024, which could be indicative of the company's potential in scaling its operations. Yet, this growth comes with the backdrop of Soluna not being profitable over the same period, which is a common challenge for companies investing heavily in new technologies and infrastructure. Moreover, the stock has experienced significant price volatility, with a strong return over the last month but a notable decline over the last six months and year-to-date.

InvestingPro Tips indicate that while Soluna has a high shareholder yield and is trading at a low Price / Book multiple, it is also quickly burning through cash with short-term obligations exceeding its liquid assets. These factors, combined with a valuation that implies a poor free cash flow yield, suggest that potential investors should weigh the growth prospects against the financial risks.

For those considering a deeper dive into Soluna's financial health and market potential, InvestingPro offers additional insights, including 10 more InvestingPro Tips for SLNH, which can be accessed at https://www.investing.com/pro/SLNH. To enhance your investing strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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