I had mentioned that Soluna Holdings (SLNH) had announced a reopening of the 9.00% cumulative preferred they had originally sold in August.
The company has now announced they are selling 445,714 shares at $17.50/share.
The prospectus supplement can be read here.
So, in August their business model was able to support people buying a pile of preferreds at around 25 and then 3 or 4 months later the same business model can only bring in 17.50? Wow! I think at the time when this was first rumored, the preferred was selling at 24.5+-. So the company didn’t even think theit stock was worth the selling price. All this to add $7M to their checkbook?
Appears to be a desperation sale–get the money while you can even if the selling price is ridiculous. A more solvent company would have found a way to raise capital than this.
Hi. Tim ,,,Happy Holiday this a $25 preferred for 17.50..????
Yes. Originally 25 until they decided to get into the bitcoin mining game and need money they don’t have. So sell more preferred at a deep discount. If bitcoin goes up you will get paid on a regular basis. If bitcoin tanks in the future your preferred might not get paid. Pretty much sums it up.
This type of company and what they are up to still feels like excess speculation of money being tossed all over the place after covid. I realize their biz model is cheap green energy being used for computation for anything under the sun but the bitcoin aspect is what brings in the greedy. I cannot even convince myself to buy 100 shares after a brief read up. Just not worth it. Wake up one day to find this preferred selling at 14 seems just as likely as 22.
Anyone buying?
going once, going twice?? Oh well. Lets have a sale!!
It looks like SLNH shareholders are just loving having all these added preferred payment commitments being tacked on to what has to be paid out before they get anything.. SLNH = +12% today..
aaaaannd…. down 11% today …