TeraWulf (US:WULF)2024-05-13 21:08Financial 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]