Is Soluna Holdings Inc. IPO a Good Buy?

On paper, the broader narrative for the renewable energy industry is straightforward, requiring no knowledge of complex nuances. With government agencies sounding the alarm on the worrying impact of…

climate change, it’s imperative that societies transition to clean power to mitigate long-term damage. However, green energy infrastructure isn’t without its economic and technical challenges, which is why the offering of preferred stock for Soluna Holdings Inc. (NASDAQ: SLNH) is intriguing.

One of the most powerful catalysts of the renewable energy industry is the ability to convert naturally occurring phenomena — sunlight, wind, ocean water kinesis among others — into practical power. However, the conversion of primary energy sources into the electrons that disseminate on demand from the household outlet imposes efficiency losses. Moreover, according to Soluna executives, renewable energy facilities don’t always sell the power they generate.

Up to 30% of power generated by the renewables industry worldwide can go to waste, rendering a potentially profitable profile into a tragically valueless condition. To remedy this disastrous dissipation, Soluna buys the excess energy that would otherwise go unsold to power scalable data centers on premise. From there, the company can redirect computing capacity to power other digital enterprises, such as cryptocurrency mining or artificial intelligence-based applications.

Possibly, this groundbreaking waste-to-power business model could help resolve climate change challenges while simultaneously bolstering next-generation technologies.

What Does Soluna Do?

At its core, Soluna is a technology firm specializing in the development of green, modular, scalable data centers for computing-intensive applications. But rather than imposing its own unique footprint on the environment, Soluna’s data centers scale up according to demand. Since the company advantages unsold power, it develops hardware on premise, ensuring maximum efficiency for the underlying business model.

In this manner, Soluna represents an indirect, background player for next-gen innovations such as crypto-mining initiatives. While debate rages on the net energy consumption of virtual currencies, one thing is clear: decentralization isn’t free. But by leveraging power that would ordinarily go to waste, Soluna responsibly buttresses blockchain architectures along with other relevant applications like machine learning.

Moreover, the company features these advantages:

  • Modularity: Soluna’s data centers are easily installable and stackable, resulting in quicker integration and utility.
  • Scalability: The data center architecture can expand to accommodate the consumption of over 100 megawatts (MW) of power.
  • Efficiency: Soluna hardware benefits from an air-cooled infrastructure, thus freeing up power for intensive applications while also ensuring maximum intake of unsold energy.
  • Flexibility: The company’s solution is geared toward real-time energy demands, adjusting consumption inflows up or down in minutes.
  • Ingenuity: Levering sensor-fusion technology, Soluna automates, monitors and proactively maintains its systems, while also keeping skilled technicians on hand to ensure operational resilience.

Finally, management claims a significant cost advantage for renewable energy facilities wanting to maximize their returns. On its website, Soluna claims that its data centers cost only one-tenth that of traditional counterparts. Further, the infrastructure can be operational in six months.

When is the Soluna IPO Date?

According to the company’s press release, on April 21, 2022, Soluna announced intentions to offer shares of its 9% Series A cumulative perpetual preferred stock. Running concurrently with the underwritten public offering, Soluna also disclosed its intentions to offer…

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