Soluna’s Project Dorothy 2 Prepares to Deliver $14M in Potential Operating Profit

The 50 MW Data Center Clears the Modeling Phase in the ERCOT Process

ALBANY, N.Y.–(BUSINESS WIRE)–Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), a developer of green data centers for intensive computing applications including Bitcoin mining and AI, announced today Project Dorothy 2, its 50 MW data center co-located at a wind farm in Texas, has passed the modeling phase in the ERCOT Large Flexible Load approval process. Approval in ERCOT modeling is a significant step to begin the bidding process and finalize financing for this major expansion of the Company’s flagship project.

Bitcoin and AI Datacenters – Project Dorothy 2 will be the home of Soluna’s 48 MW Bitcoin Hosting expansion and its new 2 MW specialized AI data center, called Helix.

John Belizaire, CEO of Soluna Holdings, commented, “Through our experience successfully energizing our 50 MW first phase of Project Dorothy, we have a blueprint to bring Project Dorothy 2 online faster and more efficiently. Passing modeling allows us to now focus on building out Project Dorothy 2 for a mix of Renewable Computing applications, such as AI and Bitcoin mining.”

Compelling Financial Profile – Project Dorothy 2 is the second phase of Soluna’s flagship 100 MW data center, powered by renewable energy. It is expected to be one of the lowest-cost facilities of its kind in North America. According to the company’s financial modeling, Project Dorothy 2 has the potential to generate up to $14 million of additional annualized project-level operating profits1 for the Company in Bitcoin Hosting revenue. The project forecasts an outstanding return on invested capital, returning capital invested in about 27 months.

Low Carbon Footprint – In late August 2023, the Company completed the construction and fully ramped Project Dorothy 1. A study done by a third party (REsurety) in early 2024 found the 50 MW site outperforms traditional data centers with an 18% lower carbon footprint while substantially reducing the burden on the electric power grid typically associated with traditional data centers. Project Dorothy 2 is on schedule to continue this trend of low carbon footprint data centers.

Shovel Ready – The next steps in the process for the new site includes completion of the construction bidding process including final construction costs for the first 48 MW, and finalizing financing options for the Bitcoin Hosting facility. To date, Soluna has received several proposals for financing Project Dorothy 2 and is close to completing diligence.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.

In addition to figures prepared in accordance with GAAP, Soluna from time to time presents alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow, both on a company basis and on a project-level basis. Project level measures may not take into account a full allocation of corporate expenses. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principle. Other companies may define these terms in different ways.

About Soluna Holdings, Inc (SLNH)

Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna’s pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications including Bitcoin Mining, Generative AI, and other compute intensive applications. Soluna’s proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions, and superior returns. To learn more visit Follow us on X (formerly Twitter) at @SolunaHoldings.

1 The financial model for Project Dorothy 2 was prepared internally based upon the same assumptions used by management in evaluating potential projects, which management believes are reasonable but are affected by factors beyond the Company’s control.


Sam Sova

Partner and CEO


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