Roth MKM analyst Darren Aftahi initiated coverage on TeraWulf Inc. WULF with a Buy rating and price target of $6.50. Aftahi anticipates that leveraging its substantial power portfolio of hundreds of megawatts for potential HPC infrastructure could drive substantial value creation through enhanced revenue and profit visibility. In FY25, the analyst expects revenue to hit about $297 million (+93% Y/Y) and adjusted EBITDA of around $150.5 million. Disclaimer: This content was partially produced with the help o ...

TeraWulf Inc. (NASDAQ:WULF) Q1 2024 Earnings Conference Call May 13, 2024 5:00 PM ET Company Participants Jason Assad - Director, Corporate Communications Paul Prager - Chairman & CEO Nazar Khan - COO Patrick Fleury - CFO Conference Call Participants Josh Siegler - Cantor Fitzgerald Lucas Pipes - B. Riley Securities Joe Flynn - Compass Point Research Mike Grondahl - Northland Securities Bill Papanastasiou - Stifel Bob Evans - Pennington Capital Operator Greetings and welcome to TeraWulf 2024 First Quarter E ...

Financial Performance - Revenue for Q1 2024 was $42.433 million, a significant increase of 268% compared to $11.533 million in Q1 2023[15] - Gross profit for Q1 2024 reached $28.025 million, up from $6.531 million in the same period last year, reflecting a gross margin improvement[15] - Operating loss for Q1 2024 was $2.316 million, a reduction from the operating loss of $9.221 million in Q1 2023[15] - Net loss attributable to common stockholders for Q1 2024 was $9.899 million, compared to a net loss of $26.516 million in Q1 2023[15] - The company generated cash flows from continuing operations of $22.8 million, a significant improvement from a cash outflow of $8.6 million in the prior year[23] - Adjusted EBITDA for the three months ended March 31, 2024, was $31.98 million, compared to a negative $2.35 million in 2023, indicating improved operational performance[200] Assets and Liabilities - Total assets increased to $395.388 million as of March 31, 2024, up from $378.106 million at the end of 2023[10][13] - Current liabilities decreased to $122.112 million as of March 31, 2024, down from $154.662 million at December 31, 2023[11] - Cash and cash equivalents were $45.824 million as of March 31, 2024, compared to $54.439 million at December 31, 2023[10] - TeraWulf's cash and cash equivalents stood at $45.8 million as of March 31, 2024, with a working capital deficiency of $67.8 million[23] - The equity of TeraWulf decreased to $128,462,000 as of March 31, 2024, down from $141,009,000 at the end of 2023[118] Mining Operations - The company achieved a total operating capacity of 8.0 EH/s across its two bitcoin mining facilities as of March 2024[23] - TeraWulf's bitcoin distributions from the joint venture amounted to $12.0 million during the three months ended March 31, 2024[25] - The Company operates solely in the Digital Currency Mining segment, with all mining operations located in the United States[76] - As of March 31, 2024, TeraWulf's bitcoin mining operations had a combined capacity of 8.0 EH/s, with 95% powered by zero-carbon energy sources[161] - The global hashrate increased from 335.3 EH/s in March 2023 to 566.0 EH/s in March 2024, while TeraWulf's operating hashrate rose from 2.8 EH/s to 8.0 EH/s, increasing its share of the global hashrate from 0.8% to 1.4%[168][169] Capital Expenditures and Investments - TeraWulf invested approximately $47.0 million in plant and equipment during the three months ended March 31, 2024[24] - The Company has commitments for the purchase of up to 90 MW of electric power over a term of ten years, which includes site investment commitments[122] - The Company entered into a purchase agreement for 5,000 S21 miners for a total price of $17,500,000, with $3,500,000 paid as of March 31, 2024[121] - The Company has the option to purchase an additional 6,000 PH (approximately 30,000 miners) for $96.0 million by December 31, 2024, with a Call Option Fee of $9.6 million paid[206] Revenue Breakdown - Mining revenue for the three months ended March 31, 2024, was $41.6 million compared to $9.2 million in the same period in 2023, while hosting revenue decreased to $0.8 million from $2.3 million[185] - Revenue from one data center hosting customer represented 1.8% and 17.2% of consolidated revenue for the three months ended March 31, 2024 and 2023, respectively[57] - The increase in digital currency from mining and hosting services was $41.5 million in Q1 2024, compared to $9.9 million in Q1 2023[203] Expenses and Costs - Cost of revenue for the three months ended March 31, 2024, was $14.4 million, an increase of approximately $9.4 million from $5.0 million in 2023, mainly due to increased mining and hosting capacity[186] - Selling, general and administrative expenses increased to $14.9 million for the three months ended March 31, 2024, from $9.4 million in 2023, driven by higher stock-based compensation and employee compensation[188] - Interest expense rose to $11.0 million for the three months ended March 31, 2024, from $6.8 million in 2023, primarily due to increased amortization of debt issuance costs[191] Stock and Equity - The number of weighted average common shares outstanding increased to 290,602,725 in Q1 2024 from 165,015,228 in Q1 2023[15] - The Company issued 839,398 shares of Common Stock in connection with the Original Term Loan, representing 1.5% of the outstanding shares, and incurred total issuance costs of approximately $4.0 million[100] - As of March 31, 2024, there were 9,749,415 unvested Restricted Stock Units (RSUs) with a weighted-average grant-date fair value of $1.72[140] Future Outlook - The company anticipates future growth in revenue and operational efficiency, contingent on market conditions and strategic initiatives[9] - TeraWulf plans to expand its mining capacity at the Nautilus Cryptomine Facility by an additional 50 MW in 2025[165] - The Company plans to continue increasing mining capacity, including the completion of the fourth building at its Lake Mariner Facility[183]

Bitcoin Mining Performance - Self-mined 1,057 bitcoin in Q1 2024, an 8.9% increase over Q4 2023, with a total installed hashrate of 8.0 EH/s[2] - Total installed hashrate capacity at the Lake Mariner Facility reached 6.1 EH/s as of March 31, 2024, a 205.0% increase year-over-year[7] - The company plans to reach ~10.2 EH/s in Q3 2024 and grow to ~13.3 EH/s by Q1 2025[3] - TeraWulf's gross profit margin increased to 66.0% in Q1 2024, up from 61.6% in Q4 2023, driven by a 33.3% increase in average operating hashrate[20] - The company's power cost per bitcoin self-mined increased to $15,501 in Q1 2024 from $10,308 in Q4 2023 due to higher network difficulty and energy prices[11] Financial Performance - Q1 2024 revenue grew 82.2% over Q4 2023 to $42.4 million, with Non-GAAP Adjusted EBITDA increasing 95.4% to $32.0 million[3] - Revenue for Q1 2024 was $42.4 million, a significant increase from $11.5 million in Q1 2023[27] - Gross profit for Q1 2024 was $28.0 million, compared to $6.5 million in Q1 2023[27] - Net loss for Q1 2024 was $9.6 million, an improvement from a net loss of $26.3 million in Q1 2023[27] - Adjusted EBITDA for Q1 2024 was $31.977 million, compared to a loss of $2.349 million in Q1 2023[35] - Net loss attributable to common stockholders improved to $9.899 million in Q1 2024 from $26.516 million in Q1 2023[35] - Equity in net income of investee, net of tax, improved by $15.442 million year-over-year, from a loss of $10.167 million in Q1 2023 to income of $5.275 million in Q1 2024[35] Debt and Capital Management - TeraWulf repaid $63.6 million of debt in 2024, reducing the debt balance to $75.8 million[3][21] - Total current liabilities decreased to $122.1 million as of March 31, 2024, down from $154.7 million at the end of 2023[26] - Proceeds from issuance of common stock, net of issuance costs, were $50.7 million in Q1 2024, compared to $26.6 million in Q1 2023[29] - Interest expense increased by $4.211 million year-over-year to $11.045 million in Q1 2024[35] Facility Expansion and Development - The company entered into a miner purchase agreement with Bitmain for 5,000 Antminer S21 miners at a total price of $17.5 million, with delivery expected in Q2 2024[7][18] - TeraWulf is expanding its Lake Mariner Facility, with Building 4 expected to increase capacity to 195 MW by mid-2024 and Building 5 to add 50 MW by Q1 2025[15] - The company is developing a high-performance computing (HPC) / AI project at the Lake Mariner Facility, committing an initial 2 MW block of power[17] Cash Flow and Asset Management - Total assets increased to $395.4 million as of March 31, 2024, up from $378.1 million at the end of 2023[25][26] - Cash and cash equivalents decreased to $45.8 million as of March 31, 2024, down from $54.4 million at the end of 2023[25][29] - Digital currency holdings increased to $2.0 million as of March 31, 2024, up from $1.8 million at the end of 2023[25] - Net cash provided by operating activities was $22.8 million in Q1 2024, compared to a net cash used of $8.7 million in Q1 2023[28][29] - Purchase of and deposits on plant and equipment totaled $47.0 million in Q1 2024, up from $10.0 million in Q1 2023[29] Adjusted EBITDA and Non-GAAP Measures - The company excludes bitcoin-related revenue generation expenses from its Adjusted EBITDA calculation as they are not considered normal operating expenses[32] - Adjusted EBITDA is used as a supplemental measure for internal decision-making and performance comparison across reporting periods[32] - The company's Adjusted EBITDA measure may not be directly comparable to similar measures used by other companies in the industry[33] - Distributions from investee related to Nautilus contributed $12.022 million to Adjusted EBITDA in Q1 2024[35] Stock-Based Compensation and Depreciation - Stock-based compensation expense increased significantly to $6.931 million in Q1 2024 from $876 thousand in Q1 2023[35] - Depreciation expense more than doubled to $15.088 million in Q1 2024 from $5.433 million in Q1 2023[35]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 __________________________________________________ TERAWULF INC. (Exact ...

Financial Data and Key Metrics Changes - In Q4 2023, TeraWulf produced 971 Bitcoin, resulting in a total value of $34.8 million and an adjusted EBITDA of $16.4 million, with a total of 3,407 Bitcoin mined throughout 2023 [9][10][36] - GAAP revenues increased by 23% quarter-over-quarter, reaching $23.3 million in Q4 2023 from $19 million in Q3 2023, and year-over-year revenues increased by 361% from $15 million in 2022 to $69 million in 2023 [28] - The company reported a GAAP net loss of $10.8 million in Q4 2023, compared to a net loss of $19.4 million in Q3 2023, and a net loss of $74.5 million for the full year 2023, down from $91.6 million in 2022 [36] Business Line Data and Key Metrics Changes - TeraWulf mined 608 Bitcoin at Lake Mariner and 364 Bitcoin at Nautilus in Q4 2023, totaling 972 Bitcoin, which represents a 2% decline from the 994 Bitcoin mined in Q3 2023 [27] - The total power cost per Bitcoin mined was $10,178 in Q4 2023, compared to $9,322 in Q3 2023 [29] - Operating expenses increased slightly from $1.2 million in Q3 2023 to $1.7 million in Q4 2023, while SG&A expenses decreased from $10.3 million in Q3 2023 to $8.8 million in Q4 2023 [31][32] Market Data and Key Metrics Changes - The company anticipates achieving a 300-megawatt infrastructure capacity by the end of 2024 and plans to expand to 550 megawatts by 2025, which will result in approximately 28 exahash of mining capacity [13] - TeraWulf's cost to mine a Bitcoin is estimated at approximately $25,000 before the halving and $37,000 after the halving, positioning the company as one of the lowest-cost producers in the industry [18][40] Company Strategy and Development Direction - TeraWulf is focused on leveraging its low-cost infrastructure to maximize profits, repay debt, and return value to shareholders, with a commitment to achieving significant scalability and operational efficiency [12][17] - The company has established Wulf Compute as an internal innovation hub to explore additional revenue streams beyond Bitcoin mining, including high-performance computing and AI applications [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate free cash flow and reduce debt, with an anticipated debt paydown of approximately $30 million in early April [19][21] - The management team highlighted the importance of ESG factors in attracting hyperscaler clients and emphasized the unique position of TeraWulf's infrastructure in meeting growing demand [16][45] Other Important Information - TeraWulf repaid $40 million of principal in the last four months, bringing the debt balance to $106 million, with liquidity of almost $56 million as of the end of February [19] - The company executed a "monetize what we mine" strategy, liquidating Bitcoin to cover operational and capital expenses rather than diluting shareholders [38] Q&A Session Summary Question: What are the two assets that have the most value for the HPC initiative? - Management highlighted the importance of size, scale, and access to low-cost, zero-carbon power as key assets for the HPC initiative [43][44] Question: Any thoughts on the elevated short interest in the stock? - Management acknowledged the short interest and noted that a significant portion is related to lenders who will unwind their positions, potentially leading to a short squeeze opportunity [46][48] Question: Could the targeted capacity be utilized for HPC or cloud services? - Management confirmed that the infrastructure is flexible and can be utilized for both Bitcoin mining and HPC services, with a focus on maximizing returns [55][56] Question: What is the appetite for refinancing the term loan? - Management indicated that the focus is on eliminating debt rather than refinancing, given the strong cash flow generation [64] Question: Can you provide color on cash on hand and outstanding payments? - Management clarified that they have about $20 million in excess liquidity and no current liabilities for miners, with Building 4 at Lake Mariner substantially funded [66] Question: What financing options exist for HPC infrastructure? - Management explained that financing for HPC infrastructure is abundant for large-cap customers with long-term contracts, while smaller, capital-intensive projects are more complex to finance [71][73] Question: Why should investors choose TeraWulf over other crypto miners? - Management emphasized TeraWulf's low-cost production, strong alignment with shareholders, and scalability as key reasons for investment [84][87]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | SAFE HARBOR STATEMENT This presentation is for informational purposes only and contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations th ...

TeraWulf Inc. (NASDAQ:WULF) Q3 2023 Earnings Conference Call November 13, 2023 5:00 PM ET Company Participants Jason Assad - Director of Corporate Communications Paul Prager - Chairman and Chief Executive Officer Patrick Fleury - Chief Financial Officer Nazar Khan - Co-Founder and Chief Operating Officer Conference Call Participants Josh Siegler - Cantor Fitzgerald Chase White - Compass Point Lucas Pipes - B. Riley Securities Mike Grondahl - Northland Securities Operator Greetings, and welcome to the TeraWu ...

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, 2023 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 TERAWULF INC. (Exact name of registrant as specified in its charter) _____________________________________________ ...

TeraWulf Inc. (NASDAQ:WULF) Q2 2023 Earnings Conference Call August 14, 2023 8:30 AM ET Company Participants Jason Assad - Director of Corporate Communications Paul Prager - Co-Founder and Chief Executive Officer Patrick Fleury - Chief Financial Officer Kerri Langlais - Chief Strategy Officer Nazar Khan - Co-Founder and Chief Operating Officer Stefanie Fleischmann - General Counsel Conference Call Participants Nick Giles - B. Riley Financial Mike Grondahl - Northland Securities Josh Siegler - Cantor Fitzger ...