TeraWulf Reports Fourth Quarter and Full Year 2024 Results

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]