Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<div><div><div><div><ul style="list-style-type: disc;"><li><p>Reported in-line 2Q results. As expected, revenues of $2.1 million were down from 1Q23 and 2Q22, as the company shifted to hosting contracts at its data centers rather than proprietary Bitcoin mining where it recognized both higher revenues and costs.</p></li><li><p>G&amp;A expenses declined sequentially and Y/Y from ongoing cost structure rationalization efforts.</p></li><li><p>We note that 2Q23 did include higher legal costs related to the multiple project signings in the quarter.</p></li></ul></div></div></div></div>

Reported in-line 2Q results. As expected, revenues of $2.1 million were down from 1Q23 and 2Q22, as the company shifted to hosting contracts at its data centers rather than proprietary Bitcoin mining where it recognized both higher revenues and costs.G&amp;A expenses declined sequentially and Y/Y from ongoing cost structure rationalization efforts.We note that 2Q23 did include higher legal costs related to the multiple project signings in the quarter.

Soluna Holdings

Soluna Holdings, Inc. - In-Line 2Q