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]

Core Insights - TeraWulf Inc. has signed long-term data center lease agreements with Core42, a G42 company, to enhance its digital infrastructure capabilities [1][4] - The agreements will provide over 70 megawatts (MW) of data center infrastructure at the Lake Mariner facility in Upstate New York, with production phases scheduled between Q1 and Q3 2025 [2][19] - TeraWulf aims to leverage its zero-carbon energy sources to support AI-driven computing alongside its existing Bitcoin mining operations, indicating a strategic expansion into high-performance computing (HPC) hosting [4][22] Financial and Operational Highlights - The data center leases include two five-year renewal options, ensuring a stable, high-margin revenue stream for TeraWulf [19] - There is potential for expanding Core42's hosting capacity by an additional 135 MW gross, equivalent to 108 MW of critical IT load, highlighting future scalability and revenue growth opportunities [19] - TeraWulf's Lake Mariner facility is positioned to meet the growing demand for sustainable AI compute infrastructure, aligning with the company's mission to power the digital economy [4][5] Leadership and Strategic Commentary - TeraWulf's CEO, Paul Prager, emphasized the partnership with Core42 as a significant opportunity to meet the surging demand for scalable, energy-efficient infrastructure [5] - Core42's growth trajectory and entrepreneurial vision were highlighted as key factors in the collaboration, enhancing TeraWulf's capabilities in AI-driven computing solutions [5] - Dell Technologies' involvement in providing state-of-the-art liquid-cooled server solutions further supports the strategic alignment of TeraWulf and Core42 in delivering innovative data center infrastructure [5]

Core Insights - TeraWulf Inc. has made significant progress in its operations, achieving a 68% year-over-year increase in operational self-mining capacity, reaching 8.4 EH/s [1][2][4] - The company self-mined 115 bitcoin in November 2024, with an average daily production rate of approximately 3.8 bitcoin [2][6] - TeraWulf is on track to deliver 72.5 MW of HPC hosting capacity by the end of Q2 2025, with ongoing construction and upgrades at the Lake Mariner facility [1][9] Production and Operations Highlights - Bitcoin production for November 2024 was 115 bitcoin, down from 150 bitcoin in October 2024 [4] - The average value per bitcoin self-mined increased to $83,947 in November from $65,427 in October [4] - Power costs per bitcoin mined rose to $41,190 in November from $36,789 in October [4] Miner and Electrical Upgrades - Approximately 7,400 state-of-the-art S21 Pro miners were installed, replacing older models [1][3] - A planned outage was completed to connect high-voltage redundant power feeds, temporarily affecting about 5.3 EH/s of miners [3] - The average operating hash rate for November was 5.9 EH/s, impacted by the planned outage and other operational factors [4][8] Management Commentary - The Chief Operating Officer highlighted the completion of significant electrical infrastructure upgrades, ensuring reliable power delivery for future HPC hosting loads [5] - Despite a brief planned outage, the company maintained strong production levels and improved miner efficiency, achieving a weighted average of approximately 19 J/TH [6] Future Outlook - TeraWulf's operational bitcoin mining capacity at the Lake Mariner facility was 195 MW as of November 30, 2024, with expectations to reach approximately 9.7 EH/s after completing miner repairs and upgrades [8] - Progress continues on large-scale HPC hosting infrastructure, with the dry cooler installation for the 20 MW CB-1 facility completed and on track for Q1 2025 [9]