tiprankstipranks
Soluna Holdings, Inc. (SLNH)
NASDAQ:SLNH
US Market

Soluna Holdings, Inc. (SLNH) AI Stock Analysis

Compare
161 Followers

Top Page

SL

Soluna Holdings, Inc.

(NASDAQ:SLNH)

43Neutral
Soluna Holdings' stock score reflects ongoing financial challenges despite strong revenue growth. Technical analysis indicates a lack of clear upward momentum, while valuation metrics suggest caution. Positive corporate events provide some optimism, but the overall financial instability remains a significant concern.

Soluna Holdings, Inc. (SLNH) vs. S&P 500 (SPY)

Soluna Holdings, Inc. Business Overview & Revenue Model

Company DescriptionMechanical Technology, Inc. engages in supplying if precision linear displacement solutions, vibration measurement and balancing systems, and wafer inspection tools. Its products consists electronic gauging instruments for position, displacement and vibration applications . The company was founded in 1961 and is headquartered in Albany, NY.
How the Company Makes MoneySoluna Holdings, Inc. generates revenue primarily through the operation and management of renewable energy-powered data centers. These facilities provide computing services to clients who require high-performance computing capabilities for various applications such as cryptocurrency mining, machine learning, and scientific research. The company earns money by leasing its data center capacity to these clients, charging for the energy usage and computing power provided. Additionally, Soluna may engage in partnerships with renewable energy producers to secure stable and cost-effective energy supplies, further enhancing its profitability. The focus on sustainable and renewable energy solutions not only reduces operational costs but also appeals to environmentally conscious customers, thereby driving demand for its services.

Soluna Holdings, Inc. Financial Statement Overview

Summary
Soluna Holdings is experiencing robust revenue growth; however, it continues to struggle with profitability and financial stability. The company faces significant operational and financial challenges, evidenced by negative profit margins, high leverage, and ongoing negative cash flows. While revenue growth is a positive sign, the company needs to focus on improving operational efficiency and financial management to enhance profitability and ensure long-term sustainability.
Income Statement
35
Negative
Soluna Holdings has shown revenue growth over the TTM (Trailing-Twelve-Months) period, with a significant increase to $39.87 million from $21.07 million in the prior year, indicating a positive growth trajectory. However, the company continues to face profitability challenges, with negative EBIT and net income margins, which highlight ongoing operational inefficiencies. The gross profit margin has improved to 26.48% in the TTM period, up from a negative margin in the previous year, but the net profit margin remains deeply negative.
Balance Sheet
40
Negative
The balance sheet reveals moderate leverage with a debt-to-equity ratio of 1.25 as of the TTM period, indicating potential financial risk. The equity ratio of 21.45% suggests a relatively low reliance on equity financing. The return on equity is negative, reflecting the company's ongoing losses. While the company has maintained a reasonable level of cash and short-term investments, the financial stability remains a concern due to high liabilities and negative equity performance.
Cash Flow
30
Negative
Cash flow from operations remains negative, posing a risk to the company's financial health. The free cash flow has improved slightly in the TTM period, but it is still negative at -$6.20 million. The operating cash flow to net income ratio is not meaningful due to negative figures, and the company is heavily reliant on financing activities to cover its cash shortfalls.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
39.87M21.07M28.55M14.35M9.60M6.57M
Gross Profit
10.55M14.70M-7.96M6.28M6.53M4.37M
EBIT
-14.55M-20.24M-84.79M-4.48M1.45M259.00K
EBITDA
-6.27M-12.41M-71.77M-762.00K-1.46M346.00K
Net Income Common Stockholders
-30.02M-29.20M-107.02M-6.39M1.95M323.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.17M6.37M1.14M10.26M2.63M2.51M
Total Assets
5.60M91.28M84.96M117.69M8.65M5.75M
Total Debt
731.00K19.77M22.88M8.54M1.21M947.00K
Net Debt
-687.00K13.41M21.74M-1.72M-1.42M-1.56M
Total Liabilities
1.90M37.92M38.69M26.71M2.73M1.92M
Stockholders Equity
3.71M26.51M41.87M90.99M5.92M3.83M
Cash FlowFree Cash Flow
-6.20M-15.69M-69.51M-51.72M787.00K206.00K
Operating Cash Flow
-2.00M-2.99M-5.75M5.55M1.62M289.00K
Investing Cash Flow
-7.25M-10.33M-45.63M-57.30M-1.58M-83.00K
Financing Cash Flow
11.39M21.86M38.16M59.38M83.00K-3.47M

Soluna Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.89
Price Trends
50DMA
1.74
Negative
100DMA
2.57
Negative
200DMA
3.40
Negative
Market Momentum
MACD
-0.26
Negative
RSI
29.08
Positive
STOCH
11.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLNH, the sentiment is Negative. The current price of 0.89 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.74, and below the 200-day MA of 3.40, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 29.08 is Positive, neither overbought nor oversold. The STOCH value of 11.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLNH.

Soluna Holdings, Inc. Risk Analysis

Soluna Holdings, Inc. disclosed 58 risk factors in its most recent earnings report. Soluna Holdings, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Soluna Holdings, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$2.70B22.424.35%34.20%
58
Neutral
$21.35B9.96-19.72%2.38%5.03%-22.83%
55
Neutral
$4.61B9.5518.84%69.38%30.30%
43
Neutral
$9.76M-121.02%163.50%84.70%
37
Underperform
$31.32M242.25%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SLNH
Soluna Holdings, Inc.
0.89
-2.61
-74.57%
RIOT
Riot Platforms
7.85
-3.88
-33.08%
MARA
Marathon Digital Holdings
13.11
-6.59
-33.45%
HIVE
HIVE Digital Technologies
1.76
-1.37
-43.77%
BITF
Bitfarms
1.15
-1.21
-51.27%
ARBK
Argo Blockchain
0.40
-1.36
-77.27%

Soluna Holdings, Inc. Corporate Events

Private Placements and FinancingDividendsBusiness Operations and Strategy
Soluna Holdings Discusses Strategy and Projects in AMA
Neutral
Jan 16, 2025

Soluna Holdings, Inc. recently hosted an ‘Ask Me Anything’ session on January 16, 2025, where management addressed various operational topics. Key discussions included the company’s approach to resuming dividend payments based on cash flow evaluations, and their financing strategies for HPC data center projects. Updates were provided on projects like Project Grace and Project Kati, with tentative timelines and cost structures discussed. The session also highlighted the company’s strategy to optimize sustainable power access and data center development, aiming to enhance its value and industry position.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Soluna Holdings Advances with Key Projects and AI Deals
Positive
Jan 8, 2025

Soluna Holdings, Inc. has announced several corporate and operational developments including a milestone achievement of monetizing over 100 GWh of curtailed energy at Project Dorothy, equivalent to powering approximately 11,500 H100s for a year. The company has signed AI deals, completed convertible notes payoff, launched flexible financing for AI enterprises, and appointed a new advisory board member. Key project updates include the near completion of customer deployments at Project Dorothy, progress in substation interconnection planning for Project Dorothy 2, and ongoing design and negotiation efforts for Project Kati. Additionally, Soluna is expanding its AI and Bitcoin hosting capabilities and has reached agreements for further deployments with key customers.

Private Placements and FinancingBusiness Operations and Strategy
Soluna Holdings Reduces Debt, Focuses on Growth
Positive
Dec 13, 2024

Soluna Holdings, Inc. announced the completion of converting and paying off its outstanding convertible notes, eliminating $772,000 of debt from its balance sheet. This strategic move enhances Soluna’s financial stability, allowing it to concentrate on advancing AI, renewable energy, and computing infrastructure projects, thereby positioning itself as a leader in sustainable high-performance computing.

Business Operations and StrategyFinancial Disclosures
Soluna Holdings Reports Record Revenue Growth and Expansion
Positive
Dec 9, 2024

Soluna Holdings, Inc. has reported significant growth with a $18.8 million increase in year-to-date revenue, reaching a record $29.7 million. The company, known for co-locating data centers with renewable energy plants, continues to expand its projects including new deployments and partnerships in Bitcoin mining and AI cloud services. Recent updates highlight progress in large-scale projects like Project Dorothy and new initiatives like Project Grace, demonstrating Soluna’s commitment to integrating renewable energy with computing resources.

Private Placements and FinancingShareholder Meetings
Soluna Holdings Approves Stock Issuance and Plan Amendments
Positive
Nov 18, 2024

At a Special Meeting, stockholders approved the issuance of additional Common Stock under a Standby Equity Purchase Agreement and amendments to a Securities Purchase Agreement, potentially exceeding 20% of the total shares, while also amending the 2021 Stock Incentive Plan to alter stock award calculations. The proposals received significant support, reflecting investor confidence in these strategic financial moves.

Private Placements and FinancingBusiness Operations and Strategy
Soluna Holdings Announces New Projects and Equity Agreement
Positive
Nov 7, 2024

Soluna Holdings, Inc., a pioneer in green data centers for Bitcoin mining and AI, has announced significant corporate and project developments in its latest update. The company has made progress towards accessing a $25 million equity agreement and introduced new projects like Grace and Ada, focusing on AI and renewable energy. Key upgrades in their sites, such as Project Dorothy and Project Sophie, highlight Soluna’s commitment to sustainable and efficient computing solutions. These advancements underline Soluna’s mission to harness renewable energy for high-performance computing applications.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.