Hello there, and welcome to Soluna Holdings Q3 Results and Business Update. I'm John Belizaire, CEO of Soluna, and I'm going to take you through our Q3 results and give you some updates on our key operations for the last quarter. Before I begin, I'd have to read our legal preamble. The following content is completely qualified by the legal disclosures on the slide following this one. Our goal is to share with you some of our strategic thinking and financial analysis we are using to guide the growth of our business. The content is in line with our principles of being accountable and transparent with our shareholders. We operate in a hyper-dynamic economic environment, and that's a fancy way of saying things change quickly.
What we are telling you here is based on our estimates and assumptions, which are our best guess, and we reserve the right to revise our point of view based on new information and changes in the business environment. Despite an uncertain dynamic environment, we must plan and make operating and investment decisions, and this presentation lays some of that out for your review. Legal disclosure and disclaimer. Let's take you through a quick company overview. I know some of you know Soluna very well, but we're often getting new shareholders, added to our shareholder roster here, new fans of the company and investors. So I'd like to take everyone through a quick overview of the business. What do we do?
We take excess energy from renewable energy sources, and we buy the curtailed energy from those sources and plants, and we convert it to clean, low-cost global computing. What we mean by that, primarily today, is Bitcoin mining, and we do that from a proprietary mining and hosting perspective, but we also are going to be expanding into the high-performance computing space, and specifically AI. The reason we focus on this is because there's a big unspoken problem in the renewable energy space. About $6.8 billion is lost every year to wasted energy. It's a big unspoken secret in the renewable energy space. Our goal is to build a capability, a solution that's available now to solve that problem and reduce curtailment to zero on a global basis.
We do that essentially by building data centers behind the meter that combine with existing power plants and allow them to monetize that wasted energy. Here's an example of a data center project that, where we consume renewable energy. It's a 150 MW site. As you can see in the far left, the company deployed or energized the facility in 2016, and consistently over the ensuing years, curtailment has increased upwards of 40%. And this is something we see very often, 30%-40% of the power and renewable energy sites never makes it to the grid. By adding our data center, starting with 50 MW, we could reduce that by half, that wasted energy. And as we begin to grow our data center upwards to matching the wind farm, we can virtually eliminate that curtailment.
That's the value proposition for wind farms and solar plants in all parts of the country. Our configuration is we build our data centers behind the meter, integrated with the substation. That allows us to source power from the grid and allows us to then build out a whole infrastructure that connects our facility to the substation and expands our footprint at that location, building an entire farm of data center facilities at that location. That data center becomes a digital battery to some extent, for the wind farm or solar farm, absorbing that wasted energy, and it, as a result, gives us access to very cost-effective power, and a lot of it, to power our data center operations. We source that power from three places: curtailed energy, subtractive energy, and grid energy.
We have advanced technology and software that allows us to source the power from those three different locations. Curtailed energy, we purchase at a fixed price. Subtractive energy, that's the energy that we would use from the wind farm or solar farm before it would go to the grid. When it's not curtailed, we pay that nodal price for that. And then grid energy, we buy it from the grid by having the power come through that substation to our data center, and then we pay the load zone price for that energy. Now, our data centers are not just Bitcoin mining facilities. They're super advanced technology. We have spent a great deal of time thinking about the thermodynamics of the site, quality build. The way we lay it out also manages the thermodynamics.
We have technology that allows us to manage the site, diagnose maintenance and operate the site. It can ramp up and ramp down very fast, and we have a host of different support for enabling and processing a host of different type of compute. This quarter, we also announced a whole host of new improvements to the data center design that will be geared toward AI that we're working on. But the point is that the facilities and the design is purpose-built to efficiently convert wasted energy to high-performance computing applications, and the configuration that we use at a particular site, or mixture of configurations, is really driven by the type of compute we'll be supporting at a given project.
This is powered all by software, so Maestro OS is our industry-leading technology that allows us to manage the control of the site. We can completely automate the fans, PDUs, miners, power infrastructure, and networking. We can enhance the life cycle and reduce failures of the facility by proactively managing activities at the site. We can manage the operations, so we have dashboards that allow us to see real-time tracking of miners and their level and activity. If they're not hashing, we can triage them. This will be true also for the next generation of computing that we're putting in the facilities.
And then more importantly, that slide I showed you earlier where I talk about the different sources of energy, our software allows us to manage that as well, the power, the source of the power, the curtailment levels, etcetera, within the site. We are servicing a broad market. Bitcoin is not the only one we're going after. We're going after AI as well, and in fact, AI is clearly at our doorstep at this point, really showing us the potential that it can have for our platform. Because AI is growing at an exponential rate right now, it needs lots of space, it needs lots of energy, and it really needs to be more sustainable. And so our positioning is to really go after that market, position ourselves as a zero-carbon cloud for these types of solutions.
And so that's really gonna be pivotal for us in the future here. Now, how do we make money? As a reminder, we make money in two ways today, four ways in the future. We started out doing proprietary Bitcoin mining, and we started shifting our business earlier this year to hosting. So we make hosting the primary part of our business, but we do do some joint venture-based Bitcoin mining in facilities where we have the best possible power and highest efficiency levels. And most recently, we've been able to do that by partnering with folks who can get access to highly efficient Bitcoin miners as well. In the future, we're going to be expanding in two new areas: grid ancillary services, we've been talking about that for a while.
Last quarter, we filed our pre-registration for ancillary services at the Dorothy site, and that is moving through the ERCOT process. We also announced, as I said, our Helix program, where we'll be designing facilities and data centers, and we have some strategic partnerships coming up as well that will launch us into this whole new market. So stay tuned, you'll see how that all comes together in the coming quarters as well. Now, how do we, how do we bring all of that together into a powerful flywheel? Why do we see the company as a platform? It's because we've become really good at sourcing low-cost, curtailed power from IPPs. We can build these facilities in a very cost-effective way, and we design that build to return capital in two years, approximately.
We use that new asset that we've built that will be owned by us for a very long time, right? These assets run 20 years or plus. And we can attract hosting customers, and then hosting customers for Bitcoin, and then down the road, we'll be able to attract high-performance computing customers, AI customers. We can turn that large computing facility that's highly flexible, managed by our Maestro OS system, into a grid asset, a grid resource, where the grid needs power or the grid needs us to ramp up our consumption because it has excess energy. We can monetize that behavior through a host of different ancillary services.
Those two or four revenue streams, if you will, allow us to grow our EBITDA, our earnings power, our profit, our cash, which we can then reinvest in the business, that allows us to then grow our project pipeline, which allows us to generate new projects, attracting more capital for development, giving our assets under management growth potential, lots of, lots of headroom for growth. Then we cycle that around to more access to low-cost power, which allows us to build more sites, etcetera, and you see how the flywheel continues to grow and expand. That's really the Soluna way and the key differentiation in the way that we, we build our business. Now, I'd like to shift to operational highlights for the third quarter. Very quickly, looking at our key operating metrics, this is through the end of October.
Our MW under management is 75 MW. That's what we have today, and we have that fully ramped today, so that's what's exciting about Q3. We reached the sort of close to final full ramping, but in this quarter that I'm talking to you now, we're fully ramped. We are able to grow to 291 MW, and we will be able to do that through a host of different project-level partnerships that we're putting together that's focused on expansion of our flagship project and our new project, Kati. We have 2.6 exahash installed across all of our sites. We have an average power cost of $30 per MW or less. Most of our sites are below that. We've been talking about something new and exciting, and that is curtailed energy consumed.
I've talked about the fact that our core business is about consuming wasted energy. More importantly, it's the amount of energy that we've monetized, actually. So we take curtailed energy and monetize it. So we've consumed over 4,000 MWh, and folks can use ChatGPT to figure out what that, what that relates to in, in perhaps real-life terms. But you know, 4,000 MWh is probably close to, you know, 1 billion iPhone charges. Now, there's a power usage efficiency that is at the heart of what we do, right? We essentially convert almost precisely the amount of energy we consume to computing, and so our cooling cost is very efficient, using only the power of physics. We deployed lots of miners last quarter as well.
Over 23,000 miners were deployed, and we had an average joules per terahash. The efficiency of the miners was well below 30 joules per terahash as well. That's important as we go into the halvening. The most efficient machines will be the machines that stay online. The most optimized power costs and power footprint will be important as well. So, when you look at our business, it's very strong and well-architected for the future. Now, I'll quickly take you through the sites. Here's Project Dorothy 1A, 950 petahash. It's wind-powered, 1.01. LCOE or power cost, if you will, is below $27, and that's our Spring Lane partnership in this site, and we've consumed about 2,500 MWh of curtailed energy.
1B, very similar. She's just coming online here, and 816 petahashes per second. Wind, 1,502 MWh, and LCOE about the same. This is our proprietary mining facility. 1 A is hosting, reminder, 1 B is prop mining, and we have a partnership with Navitas Global here to do a JV around proprietary mining. Project Sophie is our first flagship site in Kentucky. 25 MW, 844 petahash here, 1.02 on the PUE, and this is hydro grid. This is on-grid site. This was our first site design and implementation of our new thermals, and we tested Maestro here and then scaled that implementation at Dorothy. Now, I've made mention to our pipeline a few times.
I want to quickly walk you through that. So Dorothy 2 is our flagship expansion project. So we're gonna take Dorothy and double the size of that project to 100 MW, and we recently announced that we'll be doing hosting and AI at that site. We're also in the design and planning phases, so we're beginning to prepare for beginning to construct this new project in the first half of next year. Now, Project Kati, we also announced in the fall. This is a great new project, very similar to Dorothy, but bigger. Kati is a 166 MW facility, named after Katalin Karikó, the Nobel Prize winner, who is responsible for a host of new RNA vaccine therapies.
This is co-located with a 300 MW wind farm, one asset of a host of assets, associated with one of the most successful renewable energy players in the industry. Now, in addition to these projects, we have a host of different projects that we're focusing on. We added about 500 MW to our long-term pipeline, so that puts us well over 2 GW of long-term pipeline that we can source from, are developing and maturing, that we will start to build out as we have the capital and partnerships to do so. Now, let's get into the financial results for this quarter.
As I've been hinting at, we had four key focuses this quarter: energizing Dorothy, managing our cash flow and bringing expenses down, expanding our flagship facility, and also growing our pipeline. I'm very happy with the team's execution over the last three quarters. The last six months have been really challenging, you know, grueling. We were doing a lot of things, transitioning the business, dealing with the hot weather in Texas, new site coming online, finishing construction, attracting new investors, reorganizing the company and the business, investing in new technology, et cetera. The results are beginning to show the value of what we did there in that timeframe.
So if you look at this, look here of our financials, it's our, year-to-date to 2023 Q3, look. It shows you essentially the first three quarters of the business to give you a sense of the growth and potential. Essentially illustrates the significant positive impact that the strategic shift from cryptocurrency mining to data hosting has had on our, on our financial results. During the first quarter of 2023, approximately, call it 91% of our revenue came from cryptocurrency mining, generating a negative profit of $67,000, so just shy of profitability. We made a significant decision to diversify our revenue from one source, primarily from the cryptocurrency or proprietary mining, to a mix that's more heavily weighted on data hosting. And judging by our third quarter results, we definitely made the right decision.
If you look at the third quarter results, you know, implementing the change was not a trivial transition, by the way, as we were working through these past few months. But much of that transition work occurred during the second quarter, and the second quarter results reflect the impacts of the shift, right? Our total revenue declined, so we went down by 33%, from $3 million to $2.1 million, and our gross profit declined from a loss of $67,000 to a loss of $390,000. While the third quarter was still a transition quarter, and Project Dorothy 1B was not fully ramped up, and not in other words, not fully construction complete and ramped, but we were very pleased with the results.
You know, total revenue increased by 180% from $2.1 million to $5.8 million, and gross profit improved from a negative $339,000 to a positive $1.4 million, an amount sufficient to lift our year-to-date results at the end of the third quarter to $10.9 million in total revenue and $1.0 million of gross profits. So if you look at it from that perspective, we've come a long way since last year. You know, the business is turning. You know, we're coming around the corner, if you will. The team is executing well. Our model is working. We're expanding into new markets, and that's all very exciting, you know, as a team and a company, and I'm very proud of the organization.
Here's a graphical look. As you can see, you know, the blue is crypto mining, and the red-orange is data hosting and revenue. And you can see the shift quarter-over-quarter as we're beginning to grow the data hosting business and focusing on these higher margin activities. Our cryptocurrency mining, the joint ventures we're doing, are also highly profitable and also structured around the projects that are most efficient from a power perspective and flow into some of our new projects that we're working on. The rest of the slides, as you see in the attachment, are snapshots from our 10-Q. You see our balance sheet. Our cash remains strong north of $5.6 million.
Last quarter was in the sevens of unrestricted cash, and if you combine restricted and unrestricted, it's well over $10 million, and that continues to be the case. From an operating perspective, you're seeing a reduction in net loss year-over-year in this look. If you look at the EBITDA table here, we're very proud to say that year-over-year, we are adjusted EBITDA positive of $405,000. So it's a pretty significant shift in the business. In fact, this is the first time we're EBITDA positive since, I believe, the second quarter of 2022.
So the business has really shifted and turned around, and it's a strong business, as I said, and we have lots of potential for continued growth as our team continues to execute going forward. Thank you for taking the time. I appreciate you listening in on this summary of our Q3 results. If you wanna get in touch with me or the Soluna team, please reach out to us on Twitter. We're at Twitter, we're @SolunaHoldings. We're also on LinkedIn. Just go to the company page, we're Soluna Holdings. And please, if you haven't joined our newsletter, please follow the link below to join our newsletter. We give updates, insights, great articles all the time.
We appreciate the patience of our shareholders as we transition and continue to grow our business and generate a strong shareholder value, and always open to your comments and feedback. We'll be in touch. Thank you.