Soluna Holdings signs power purchase agreement to boost renewable energy computing



ALBANY, NY – Green data center developer Soluna Holdings, Inc. (NASDAQ: SLNH) has entered into a power purchase agreement (PPA) with EDF (EPA:) Renewables and Masdar for a new project called Kati, located in New York Albany, State. The joint venture marks an expansion of Soluna's product portfolio and is designed to enhance its renewable computing capabilities.

The Kati project agreement, Soluna's second such initiative in Texas, will develop a renewable computing data center co-located with wind energy facilities owned by EDF Renewables and Masdar.

The project will be carried out in two phases, with each phase expected to contribute 83 megawatts (MW) of renewable energy capacity, bringing the total to 166 MW upon completion. This capability will support high-performance computing applications, including artificial intelligence (AI).

The signing of the PPA confirms Soluna’s ownership of the Kati project and strengthens 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 development of the project.

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

Known for its digital infrastructure that uses surplus renewable energy as computing resources, Soluna operates data centers that support applications such as mining and generating artificial intelligence. The company leverages its proprietary software, MaestroOS™, to deliver cost-effective and sustainable computing while working toward a greener grid.

This announcement is based on press release statements and contains forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. For more information, please refer to Soluna's filings with the U.S. Securities and Exchange Commission.

Investment Professional Insights

As Soluna Holdings, Inc. (NASDAQ: SLNH ) continues to advance its renewable energy plans, the company's financial metrics and market action present a mixed picture. Soluna has a market capitalization of nearly $10 million, and its size reflects the high-growth but often volatile nature of the green technology industry. The company's price-to-book ratio for the trailing 12 months to Q1 2024 was 0.46, suggesting the stock may be trading at a discount to its book value, which is of interest to value-oriented investors.

InvestingPro data also highlights Soluna's strong revenue growth of 36.84% in the trailing 12 months to Q1 2024, which could indicate the company's potential to expand its business. However, this growth came against the backdrop of Soluna being unprofitable during the same period, a common challenge faced by companies investing heavily in new technology and infrastructure. Additionally, the stock has experienced huge price swings, with strong returns last month but significant declines over the past six months and year-to-date.

InvestingPro Tips shows that while Soluna has a high shareholder yield and a low price-to-book ratio, the company is also burning through cash quickly as short-term debt exceeds its liquid assets. These factors, combined with a valuation that implies lower free cash flow yields, suggest potential investors should weigh growth prospects against financial risks.

For those considering a deeper understanding of Soluna's financials and market potential, InvestingPro offers additional insights, including SLNH's 10 InvestingPro Tips, accessible at https://www.investing.com/pro/SLNH. To enhance your investing strategy, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.





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