Soluna ( NASDAQ: SLNH ) shares are down 16% after the crypto data center developer reported second quarter results , with revenue of $8.67M up 5.2x year-over-year but down 6.3% sequentially amid declining bitcoin ( BTC-USD ) prices.
In its latest flash presentation, the company noted that increased seasonal curtailment and outage at Marie accounted for ~$0.6M in the revenue lost in Q2.
Although adj. cash contribution margin grew +4x year-over-year, it declined 3.9% sequentially. Prop mining margins were 55.3%, while hosting margins (excluding legacy hosting) were 17.3%.
Taking all sites into account, adj. EBITDA grew +2.9x year-over-year but fell 13.4% sequentially. The company expects increased overhead and SG&A costs going forward to support long-term pipeline growth.
Average price of Bitcoin declined 32% from May to July 2022. BTC mined equivalent increased 10.4% over same period, while revenue declined 25%.
July update: Cash contribution margin slipped from $800K in June to $433K (excluding fuel cost adjustment) in July. Revenue, too, dropped from $2.28M to $2.25M, while consolidated power costs grew 26.9%.
August pricing is likely to remain elevated, but Soluna ( SLNH ) expects decline in September costs. Assuming an FCA return to June levels, the reduction would reflect ~$300K+ improvement to July's expenses.
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Soluna stock dips as Q2 rev, cash contribution drop sequentially