Financial Data and Key Metrics - GAAP revenues decreased 24% QoQ to $27.1 million in Q3 2024 from $35.6 million in Q2 2024 [19] - The company self-mined 442 Bitcoin at Lake Merida and had a net share of 113 Bitcoin from Nautilus, totaling 555 Bitcoin, a 21% decrease from 699 Bitcoin in Q2 2024 [19] - The average power cost per Bitcoin mined was $30,448 in Q3 2024, up from $22,954 in Q2 2024 [22] - GAAP net loss attributable to common shareholders was $23.0 million in Q3 2024, compared to a net loss of $11.2 million in Q2 2024 [26] - Non-GAAP adjusted EBITDA was $6.0 million in Q3 2024, down from $19.5 million in Q2 2024 [26] - The company held $24 million in cash as of September 30, 2024, with total assets of $405 million and total liabilities of $33 million [26] Business Line Data and Key Metrics - The company sold its 25% stake in the Nautilus Cryptomine joint venture for $92 million, achieving a 3.4x return on investment [9] - A new long-term ground lease at Lake Mariner increased total acreage by nearly 50%, from 107 acres to 157 acres, with exclusive rights to up to 750 megawatts of infrastructure capacity [10] - The company raised $500 million through an oversubscribed convertible bond offering in October 2024 [12] - A $200 million stock buyback program was approved, with $115 million worth of shares already repurchased [12] - The cost to mine Bitcoin was approximately $54,000 per Bitcoin in Q3 2024, among the industry's lowest [13] - The company ordered the latest Bitmain S21 Pro miners, expected to arrive by early Q1 2025, to boost mining efficiency [14] Market Data and Key Metrics - The company completed construction of a 2.5-megawatt proof-of-concept project in Q3 2024, with 20-megawatt CB-1 and 50-megawatt CB-2 data centers on schedule for Q1 and Q2 2025, respectively [15] - Advanced discussions with potential tenants for HPC hosting are ongoing, with the first HPC hosting partner expected to be announced before the end of 2024 [15] - The company is focusing on regions with abundant, low-cost, zero-carbon power, leveraging its Lake Merida facility's direct grid connection and robust energy infrastructure [16][17] Company Strategy and Industry Competition - The company is doubling down on its core strategy of leveraging low-cost, sustainable energy and operational excellence to thrive in the high-speed compute market [8][16] - Regulatory shifts around data centers at nuclear power plants have highlighted the challenges of securing large-scale carbon-free power, positioning the company's Lake Merida facility as a unique asset [17] - The company is targeting high-power compute customer contracts with one-year revenue prepays and expects to execute project financing for approximately 70% of the total project cost [30] Management Commentary on Operating Environment and Future Outlook - The company is confident in its approach, seeing the industry increasingly align with its core strengths of low-cost, sustainable energy and operational excellence [8] - The recent FERC ruling has intensified the scramble for power, with sites like Lake Mariner gaining more attention due to their access to power, land, and water [44][45] - The company expects to announce its first HPC hosting partner before the end of 2024 and is prepared to expand capacity with the right customer and contract terms [38][41] Other Important Information - The company incurred a loss of $2.7 million in equity of investee net of tax in Q3 2024, compared to income of $0.8 million in Q2 2024, reflecting its proportional share of the Nautilus joint venture's net loss [25] - The company expects to achieve a marginal cost of production of approximately $59,000 in Q4 2024 and $47,000 in Q1 2025 [27] - Planned outages at Lake Mariner in mid-November 2024 will impact approximately 5.2 exahash of mining capacity for one week as the company connects ultra-high-voltage redundant power feeds [28] Q&A Session Summary Question: Capital expenditure details for CB-1 and CB-2 - The build cost for CB-1 is approximately $100 million, or $5 million per megawatt, while CB-2 is estimated at $250-300 million, or $5.5 million per megawatt [35][36] Question: First HPC customer and contract structure - The company expects to announce one or two customers for the initial 72.5 megawatts of capacity before year-end, with advanced negotiations ongoing [38][41] Question: Demand environment and pricing trends - Pricing per kilowatt hour has increased marginally, with more parties prepared to meet the company's terms, particularly after the FERC ruling [43][44] Question: Project financing for HPC - The company feels confident about its ability to secure project financing without additional equity, leveraging one-year revenue prepays and existing infrastructure [46][50] Question: Future expansion and capital allocation - The company plans to provide 2025 guidance in February and will adjust expansion plans based on customer demand and market conditions [54][55] Question: Feedback on WULF Den proof of concept - Potential customers have visited the site and provided positive feedback, with discussions focusing on cooling solutions and operational details [76] Question: Regulatory environment and industry outlook - The company anticipates a cleaner regulatory environment under the new administration, which could facilitate faster project approvals and reduce operating burdens [79][80] Question: Redundant power and miner sales - Redundant power will primarily focus on HPC hosting buildings, with Bitcoin mining facilities requiring less redundancy [87][88] - The company sold the majority of miners from Nautilus for $10.5 million and is upgrading its fleet for greater efficiency [89] Question: Long-term demand for power capacity - The company sees significant growth in data center demand, driven by high-speed compute workloads, and is well-positioned to meet this demand with its existing infrastructure [93][94]

TeraWulf Inc. (NASDAQ:WULF) Q3 2024 Earnings Conference Call November 12, 2024 5:00 PM ET Company Participants John Loftin - SVP, Director of IR Paul Prager - CEO Patrick Fleury - CFO Conference Call Participants Lucas Pipes - B. Riley Securities Mike Grondahl - Northland Securities Brett Knoblauch - Cantor Fitzgerald Joe Flynn - Compass Point Research & Trading Brian Dodson - Clear Street John Todaro - Needham and Company Kevin Cassidy - Rosenblatt Securities Bill Papanastasiou - Stifel Operator Good after ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41163 | --- | --- | --- | |----------------------------------------- ...

Core Viewpoint - TeraWulf Inc. has successfully completed a private placement of $500 million in 2.75% Convertible Senior Notes due 2030, aimed at enhancing its financial position and supporting growth initiatives [1][4]. Group 1: Convertible Notes Offering - The offering of Convertible Notes was conducted under Rule 144A of the Securities Act, targeting qualified institutional buyers [1]. - The total principal amount includes an additional $75 million from an option granted to initial purchasers [1]. Group 2: Financial Strategy - TeraWulf entered into capped call transactions with a cap price of $12.80, which is a 100% premium over the last reported sale price [2]. - The company repurchased $115 million worth of its common stock as part of its strategy to mitigate shareholder dilution [2][3]. Group 3: Use of Proceeds - The net proceeds from the Convertible Notes sale were approximately $487.1 million after deducting discounts and expenses [4]. - The company plans to allocate $60 million for capped call transaction costs, $115 million for share repurchases, and the remainder for general corporate purposes, including working capital and data center infrastructure expansion [4].

Core Viewpoint - TeraWulf Inc. has announced a share repurchase program authorizing the repurchase of up to $200 million of its outstanding shares through December 31, 2025, reflecting confidence in its business strategy and financial health [1][2]. Financial Strategy - The company has fully retired its debt earlier this year and is focused on optimizing capital allocation to enhance shareholder value and drive profitable growth [2]. - The share repurchase will be funded using excess cash after disciplined capital expenditures aimed at supporting organic growth in high-performance computing (HPC) and artificial intelligence (AI) [1][2]. Share Repurchase Program Details - The timing, method, price, and volume of share repurchases will be at the company's discretion, with purchases potentially made through various avenues such as open market transactions or privately negotiated transactions [3]. - The company retains the right to modify, suspend, or discontinue the program at any time [3]. Company Overview - TeraWulf develops and operates environmentally sustainable data center infrastructure in the U.S., primarily for Bitcoin mining and high-performance computing, utilizing predominantly zero-carbon energy sources [4]. - The company operates the Lake Mariner facility, which is situated on a retired coal plant site in Western New York, and generates revenue mainly through Bitcoin mining [4].

TeraWulf Inc. (WULF) shares soared 18.5% in the last trading session to close at $6.21. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.4% gain over the past four weeks.Shares of TeraWulf rallied for the second consecutive trading session. The surge in the company’s shares seems to be driven by investor optimism about Bitcoin's trajectory. Several favorable factors including easing monetary policy across the globe, growing sup ...

EASTON, Md., Oct. 10, 2024 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) ("TeraWulf" or the "Company"), a leading owner and operator of vertically integrated, next-generation digital infrastructure powered by predominantly zero-carbon energy, today announced a new, long-term ground lease agreement at Lake Mariner ("New Ground Lease") that supports the Company's expansion into high-performance computing (HPC) and AI data centers and positions TeraWulf to attract long-term, high-quality customers. The New ...

Core Insights - TeraWulf Inc. has achieved significant advancements in its high-performance computing (HPC) and artificial intelligence (AI) digital infrastructure, with a self-mining capacity of 10.0 EH/s, doubling year-over-year [1][2]. Production and Operations Highlights - In September 2024, TeraWulf mined 176 bitcoin, averaging approximately 5.9 bitcoin per day [2][5]. - The operational self-mining capacity remained at approximately 10.0 EH/s, reflecting a 100% increase year-over-year [2][6]. - The average power cost per bitcoin mined was $35,109, equating to about $0.042 per kWh [2][3]. Key Metrics - Bitcoin self-mined at Lake Mariner was 140 in September, down from 147 in August [3]. - Bitcoin self-mined at Nautilus was 36 in September, slightly down from 37 in August [3]. - The value per bitcoin self-mined increased to $60,168 in September from $60,025 in August [3]. - The average operating hash rate was 8.2 EH/s, consistent with the previous month [3]. Recent Strategic Developments - On October 3, 2024, TeraWulf closed the sale of its 25% equity interest in the Nautilus facility for approximately $92 million, with plans to reinvest this capital into the construction of the 20 MW CB-1 facility at Lake Mariner [4][5]. - The construction of the CB-1 facility is on track for completion in Q1 2025, and the company has secured long-lead items for a subsequent 50 MW AI/HPC facility, CB-2, expected to be operational in early Q2 2025 [5][7]. Company Overview - TeraWulf develops and operates environmentally sustainable data center infrastructure in the U.S., primarily for Bitcoin mining and HPC, leveraging predominantly zero-carbon energy sources [8].

HOUSTON, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Talen Energy Corporation ("Talen" or the "Company") (NASDAQ: TLN), an independent power producer dedicated to powering the future, announced today that it has completed a transaction with TeraWulf Inc. ("TeraWulf") to purchase TeraWulf's interest in Nautilus Cryptomine ("Nautilus"), a 200-megawatt bitcoin mining facility in Berwick, Pa. As a result of the transaction, Talen now owns 100% of Nautilus. "We are pleased to complete this strategic transaction," said Col ...

Total Consideration of Approximately $92 Million, Resulting In a 3.4x Return on Investment1 2 MW AI/HPC Proof-of-Concept Project Nearing Completion; Targeting operations for 20 MW CB-1 in Q1 2025 and 50 MW CB-2 in Q2 2025 Maintains Q1 2025 Target ~13 EH/s Operating Capacity While Upgrading Fleet Efficiency to 18.2 J/TH and Optimizing Operating Expenses Schedules Conference Call for Third Quarter 2024 Financial Results EASTON, Md., Oct. 03, 2024 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) ("TeraWulf" or ...