TeraWulf (WULF) - 2024 Q4 - Annual Results

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]