Soluna is in the business of buying curtailed renewable energy to provide energy-intensive computing services for profits such as using curtailed energy to mine Bitcoin.Soluna's business model might backfire as the curtailed renewable energy subsector is expected to shrink as great efforts (e.g. CAISO) are invested to solve the curtailment problem.We explained the drivers of curtailment of energy, how curtailment can be solved, and Soluna's possibility of conflict of interest in this matter.According to Soluna's cost structure, sourcing curtailed renewable energy doesn't provide it with competitive advantage in cost as Soluna's energy cost per BTC mined is about 2x more than MARA and IREN.Based on 2023 expected capacity, Soluna is priced fairly relative to other miners such as MARA, RIOT, and IREN.IntroductionWe're currently on the hunt for alpha in the Bitcoin mining sector. Since May 2021, we've been warning investors about a coming bear market that was depicted by Bitcoin's (BTC-USD) decade-old cycle. More specifically, we discouraged investors from taking positions in Bitcoin mining companies as Bitcoin mining companies are more volatile than Bitcoin and possess additional risks such as insolvency. We've recently updated our outlook on Bitcoin and expect Bitcoin to end its bear market by end of 2022 before entering its recovery phase that spans another 1 to 2 years. Therefore, this will be a good time to seek alpha in the ...
