Financial Data and Key Metrics Changes - In Q4 2024, GAAP revenues increased by 29% quarter-over-quarter, reaching $35 million from $27.1 million in Q3 2024, and year-over-year increased by 102% from $69.2 million in 2023 to $140.1 million in 2024 [28] - The GAAP net loss in Q4 2024 was $29.2 million compared to a net loss of $22.7 million in Q3 2024, while the net loss for 2024 was $72.4 million compared to a net loss of $73.4 million in 2023 [39] - Non-GAAP adjusted EBITDA for Q4 2024 was $2.5 million, down from $6.3 million in Q3 2024, while adjusted EBITDA for 2024 was $60.4 million compared to $31.9 million in 2023 [39] Business Line Data and Key Metrics Changes - The WULF Mining business doubled revenue and adjusted EBITDA year-over-year, driven by higher Bitcoin production and favorable Bitcoin pricing [10] - In Q4 2024, the company mined 423 Bitcoin, a 24% decrease from 555 Bitcoin in Q3 2024, while the total for 2024 was 2,728 Bitcoin compared to 3,343 Bitcoin in 2023 [27] - The hash rate achieved by WULF Mining was 9.7 exahash per second at year-end, with plans to increase to 13.1 exahash per second with the deployment of new miners [10] Market Data and Key Metrics Changes - The company reported a 55% increase in realized power prices from $0.038 per kilowatt hour in Q3 2024 to $0.059 per kilowatt hour in Q4 2024 [29] - The power cost per Bitcoin mined was $46,328 in Q4 2024, compared to $30,448 in Q3 2024, and $25,227 in 2023 [30] Company Strategy and Development Direction - The company aims to contract and deploy 100 to 150 megawatts of HPC hosting capacity annually over the next three years, with the initial contract with Core42 expected to generate over $1 billion in revenue over ten years [16] - TeraWulf is focused on scaling its HPC hosting business while continuing to optimize its Bitcoin mining operations, indicating a strategic shift towards high-performance computing and AI workloads [8][15] - The company is prioritizing the Cayuga site for expansion, which is expected to add 150 megawatts of capacity in 2026, scalable to 400 megawatts by 2028 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for HPC and AI compute infrastructure, despite some headlines suggesting a slowdown in hyperscaler demand [15] - The company remains optimistic about the future, with plans to energize Miner Building 5 and execute on the Core42 agreement in 2025 [22] - Management highlighted the importance of energy infrastructure and the ability to evaluate additional site opportunities, which positions the company favorably in the competitive landscape [20][124] Other Important Information - The company repurchased $150 million of stock as part of a $200 million authorization, marking the first return of capital by any public Bitcoin miner [21] - The company has initiated a process to integrate the Cayuga site, ensuring compliance with governance standards and transparency [19] Q&A Session Summary Question: How is Mariner positioned for inference given the current demand? - Management indicated that both training and inference capabilities are supported at the Lake Mariner site, with existing contracts ensuring stability [48] Question: What geographies are attractive for additional site acquisitions? - The priority is the Cayuga site, with a focus on energy development and the ability to evaluate challenged sites for potential [50][51] Question: What is the status of the 250 megawatts at Lake Mariner? - The company is in discussions with potential customers for the available capacity, emphasizing long-term demand [61] Question: What is the timeline for the initial 72 megawatts at CB-1? - The timeline is dependent on Core42's decisions regarding their options for additional power [66] Question: What is the competitive landscape for sourcing new sites? - The company believes it has a competitive advantage due to its energy expertise and ability to evaluate sites that others may overlook [120][123] Question: What is the status of project financing efforts? - Management expressed confidence in the demand for financing, with positive feedback from potential lenders [126][130]

TeraWulf Inc. (NASDAQ:WULF) Q4 2024 Earnings Conference Call February 28, 2025 8:00 AM ET Company Participants John Loftin - Senior Vice President, Director of Investor Relations Paul Prager - Co-Founder, Chairman and Chief Executive Officer Patrick Fleury - Chief Financial Officer Conference Call Participants Nick Giles - B. Riley Securities Mike Grondahl - Northland Capital Markets Darren Aftahi - ROTH Capital Partners Brett Knoblauch - Cantor Fitzgerald Martin Toner - ATB Capital Markets John Todaro - Ne ...

TERAWULF Moving Infrastructure Forward Fourth Quarter and Fiscal 2024 Update February 2025 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 that are not historical facts. All statements, other than statements of historica ...

Financial Performance - Annual revenue increased by 102% to $140.1 million in 2024, compared to $69.2 million in 2023, driven by a 129% increase in the average price of bitcoin year-over-year[7] - Revenue for the year ended December 31, 2024, was $140,051,000, a significant increase of 102.4% compared to $69,229,000 in 2023 and a substantial rise from $15,033,000 in 2022[20] - The net loss for 2024 was $72,418,000, slightly improved from a net loss of $73,421,000 in 2023, with a loss per common share of $0.21 compared to $0.35 in the previous year[20] - Total costs and expenses for 2024 were $216,267,000, up 119.5% from $98,650,000 in 2023, leading to an operating loss of $76,216,000 compared to a loss of $29,421,000 in 2023[20] - The Company's net loss for the year ended December 31, 2024, was $72,418,000, compared to a net loss of $73,421,000 in 2023, indicating a slight improvement[27] Adjusted EBITDA - Non-GAAP adjusted EBITDA for 2024 was $60.4 million, up from $31.9 million in 2023, reflecting a $28.5 million increase[9] - Non-GAAP Adjusted EBITDA for 2024 was $60,377,000, significantly up from $31,864,000 in 2023, reflecting a growth of approximately 89.5%[27] - Adjusted EBITDA, a non-GAAP measure, is utilized by the company to provide a clearer picture of its operational performance, excluding certain non-cash and non-recurring items[24] Cash and Holdings - Cash and bitcoin holdings totaled $275 million as of December 31, 2024, significantly up from $54.4 million at the end of 2023[11] - Cash and cash equivalents at the end of 2024 totaled $274,065,000, a significant increase from $54,439,000 at the end of 2023[23] - Net cash used in operating activities from continuing operations was $(24,422,000) in 2024, a decline from net cash provided of $4,263,000 in 2023[22] - The company raised $188,715,000 from the issuance of common stock in 2024, which was a key component of its financing activities[22] Mining Capacity and Operations - Self-mining operating capacity expanded by 94% year-over-year to 9.7 EH/s, compared to 5.0 EH/s in 2023[1] - TeraWulf's mining capacity at Lake Mariner increased to 195 MW as of December 31, 2024, compared to 110 MW in 2023[7] - TeraWulf signed long-term data center lease agreements for 72.5 MW of hosting capacity, with an option to expand by an additional 135 MW[5] - The company plans to deliver 72.5 MW of HPC hosting capacity in 2025, capitalizing on strong demand for AI-driven compute infrastructure[2] Expenses and Financial Adjustments - Cost of revenue increased by 129% to $62.6 million in 2024, driven by increased bitcoin mining capacity and higher power prices[8] - The company incurred $59,808,000 in depreciation expenses in 2024, reflecting ongoing investments in property, plant, and equipment[20] - Stock-based compensation expense increased significantly from $5,859,000 in 2023 to $30,927,000 in 2024, representing a rise of over 426%[27] - Depreciation expenses rose from $28,350,000 in 2023 to $59,808,000 in 2024, indicating an increase of approximately 111%[27] - Interest expense decreased from $34,812,000 in 2023 to $19,794,000 in 2024, showing a reduction of approximately 43%[27] Other Financial Activities - The company eliminated legacy term loan debt of $139.4 million in 2023, enhancing financial flexibility[10] - The company reported a gain on the sale of equity interest in an investee amounting to $22,602,000 in 2024, contributing positively to the financial results[20] - The Company recognized a gain on the sale of equity interest in investee amounting to $22,602,000 in 2024, which was not present in 2023[27] - The Company had distributions from investee related to Nautilus amounting to $22,776,000 in 2024, compared to $21,949,000 in 2023, showing a slight increase[27] - Loss on disposals of property, plant, and equipment, net, increased from $1,209,000 in 2023 to $17,824,000 in 2024[27] - The Company did not report any income tax benefit for both years, maintaining a consistent position[27]

Core Insights - TeraWulf Inc. announced a strategic expansion into AI-driven high-performance computing (HPC) hosting, with long-term data center leases expected to generate $1 billion in cumulative revenue over the initial 10-year contract terms [1] - The company reported a 102% increase in annual revenue to $140.1 million for the fiscal year 2024, compared to $69.2 million in 2023, driven by increased bitcoin production and higher average realized bitcoin prices [3][7] - Non-GAAP adjusted EBITDA rose by 89% year-over-year to $60.4 million in 2024, up from $31.9 million in 2023 [3][9] Financial Performance - Revenue for the year ended December 31, 2024, increased to $140.1 million, a 102% rise from $69.2 million in 2023, primarily due to a 129% increase in the average price of bitcoin [3][7] - Cost of revenue, excluding depreciation, increased by 129% to $62.6 million in 2024, compared to $27.3 million in 2023, driven by increased mining capacity and higher network difficulty [8] - The company maintained strong mining margins despite industry challenges, leveraging its low-cost, predominantly zero-carbon energy infrastructure [7] Operational Highlights - TeraWulf expanded its self-mining operating capacity by 94% year-over-year to 9.7 EH/s, compared to 5.0 EH/s in 2023 [1] - The company increased its mining capacity at Lake Mariner to 195 MW as of December 31, 2024, up from 110 MW in 2023 [7] - TeraWulf signed long-term data center lease agreements with Core42 for 72.5 MW of hosting capacity, with an option to expand by an additional 135 MW [5][6] Capital Management - As of December 31, 2024, TeraWulf held $275 million in cash and bitcoin, significantly improving its balance sheet [10][13] - The company proactively repaid legacy term loan debt ahead of schedule and financed HPC hosting growth through a new issuance of 2.75% convertible notes due in 2030 [1][10] - TeraWulf authorized a $200 million share repurchase program and executed over $150 million in repurchases, equivalent to over 24 million shares of common stock [1][10] Future Outlook - The company aims to execute the 72.5 MW of HPC hosting capacity set for delivery in 2025, capitalizing on strong demand for AI-driven compute infrastructure [2] - TeraWulf is well-positioned to scale its HPC hosting and colocation services by 100-150 MW annually, as the scarcity of digital infrastructure intensifies [2]

Company Overview - TeraWulf (NASDAQ: WULF) is a Bitcoin miner that is expanding its operations to include hosting high-performance computers (HPC) for Artificial Intelligence and Machine Learning (AI/ML) hyperscalers [1]. Operational Details - The company currently mines Bitcoin at a single location in Lake Mariner, New York, which is strategically located near Niagara Falls [1]. Investment Perspective - The article reflects on traditional investment concepts such as dividend yield and discounted cash flows, contrasting them with the current market dynamics where growth stocks often have undefined P/E ratios or P/S ratios exceeding 10x [1].

Core Viewpoint - TeraWulf Inc. is set to hold its earnings conference call for Q4 2024 on February 28, 2025, at 8:00 a.m. ET, with a press release detailing the results to be issued prior to the call [1] Company Overview - TeraWulf develops, owns, and operates environmentally sustainable data center infrastructure in the U.S., specifically for Bitcoin mining and high-performance computing [3] - The company operates the Lake Mariner facility on a retired coal plant site in Western New York, generating revenue primarily through Bitcoin mining using predominantly zero-carbon energy sources like nuclear and hydroelectric power [3] - TeraWulf is committed to environmental, social, and governance (ESG) principles, aiming to deliver industry-leading economics in mining and data center operations at an industrial scale [3]

Core Insights - TeraWulf Inc. is a leading operator of next-generation digital infrastructure focused on Bitcoin mining, utilizing predominantly zero-carbon energy sources [2] - The company is committed to environmental, social, and governance (ESG) principles, aiming to deliver industry-leading economics in mining and data center operations [2] Upcoming Conferences - TeraWulf's senior management will participate in several investor and industry conferences throughout early 2025, including: - Needham Growth Conference on January 16, 2025 (Virtual) - CfC St. Moritz from January 15-17, 2025 (St. Moritz, Switzerland) - PTC 25 from January 19-22, 2025 (Honolulu, HI) - Cantor Tech Ski Summit from January 22-25, 2025 (Telluride, CO) - Susquehanna Technology Conference on February 27-28, 2025 (New York, NY) - Bitcoin Ski Summit from March 5-9, 2025 (Jackson Hole, WY) - Cantor NY Tech Conference on March 11-12, 2025 (New York, NY) - Roth 2025 from March 16-18, 2025 (Dana Point, CA) [1]

Core Insights - TeraWulf Inc. has secured high-performance computing (HPC) data center leases with Core42 for over 70 MW of digital infrastructure, representing total revenue exceeding $1 billion over an initial 10-year term [1][4] - The company self-mined 158 bitcoin in December 2024, bringing the year-to-date total to 2,728 bitcoin and 423 bitcoin in Q4 2024 [1] - TeraWulf achieved an installed self-mining capacity of 9.7 EH/s, marking a 94% year-over-year increase [1][6] Production and Operations Highlights - Bitcoin self-mined in December 2024 was 158, compared to 115 in November 2024 [3] - The value per bitcoin self-mined increased to $98,326 in December from $83,947 in November [3] - Power cost per bitcoin self-mined rose to $62,805 in December from $41,190 in November [3] - The average operating hash rate was 8.4 EH/s in December, up from 5.9 EH/s in November [3] Management Commentary - The CEO of TeraWulf highlighted the significance of the data center lease agreements as a milestone for the company, indicating a strong demand for sustainable and scalable digital infrastructure [4] - The company is in discussions for additional tenants to utilize the remaining 178 MW of near-term HPC hosting capacity at Lake Mariner [4] - TeraWulf is evaluating strategic site acquisition opportunities to expand its footprint beyond the current 750 MW potential at Lake Mariner [4] Operational Capacity - As of December 31, 2024, TeraWulf's operational bitcoin mining capacity was 195 MW with an installed self-mining hash rate of approximately 9.7 EH/s [5] - The average power cost per bitcoin mined was approximately $0.078/kWh, excluding proceeds from demand response and ancillary services [6]

Core Insights - TeraWulf has signed long-term data center lease agreements with Core42, a subsidiary of G42, to expand its AI infrastructure offerings tailored for US customers [22] - The partnership positions TeraWulf at the intersection of AI compute and Bitcoin mining, leveraging the growing demand for scalable, energy-efficient infrastructure [2][12] - TeraWulf's Lake Mariner facility will support Core42's deployment with over 70 MW of turn-key data center infrastructure, set to be operational in phases between Q1 and Q3 2025 [11][12] Company Overview - TeraWulf operates environmentally sustainable data center infrastructure in the US, primarily for Bitcoin mining and high-performance computing (HPC) workloads [6] - The company generates revenue through Bitcoin mining, utilizing predominantly zero-carbon energy sources such as hydroelectric and nuclear power [6] - Core42 specializes in sovereign cloud and AI infrastructure, aiming to empower various entities to unlock the full potential of AI [7] Strategic Importance - The data center leases include two five-year renewal options, providing a stable, high-margin revenue stream for TeraWulf [3] - The agreements allow for an additional 135 MW gross hosting capacity, equivalent to 108 MW of critical IT load, indicating potential for future scalability and revenue growth [3] - TeraWulf's collaboration with Core42 enhances its long-term earnings potential and diversifies its revenue streams [2] Leadership Commentary - TeraWulf's CEO emphasized the strategic relationship with Core42 as a significant opportunity in the digital infrastructure space [2] - Core42's growth trajectory and vision were highlighted as key factors in the partnership, indicating a strong alignment in meeting the demand for AI-driven computing solutions [13]