TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), owners
and operators of vertically integrated, domestic bitcoin mining
facilities powered by more than 91% zero-carbon energy, today
provided an unaudited monthly production and operations update for
December 2023.
December 2023
Highlights
- Self-mined 334 bitcoin in December
with an average production rate of over 10 bitcoin per day.
- Power cost averaged $11,212 per
bitcoin self-mined, or approximately $0.038/kWh in December.
- Building 3 at the Lake Mariner
facility is operationally ready with energization of additional
18,500 S19j XP miners expected in February 2024. Construction of
Building 4 is underway.
- Expansion of existing
high-performance computing (“HPC”) project supporting generative AI
and large language model applications at the Lake Mariner facility,
planned for 2024.
- Expect to repay approximately $14
million of debt with cash generated in Q4 2023, with an $11 million
expected repayment in January 2024, thereby reducing the Company’s
future interest payments.
Key Metrics 1 |
December 2023 |
Bitcoin Self-Mined 2 |
334 |
Value per Bitcoin Self-Mined 3 |
$42,436 |
Power Cost per Bitcoin Self-Mined 4 |
$11,212 |
Avg. Operating Hash Rate (EH/s) 5 |
5.0 |
Management Commentary
“During December, the Company mined 334 bitcoin, a slight
increase from November’s bitcoin production, due to continued
improvement leveraging lower winter temperatures across both the
Lake Mariner and Nautilus facilities, along with streamlined miner
maintenance and healthy transaction fees,” said Sean Farrell, SVP
of Operations at TeraWulf.
“The Lake Mariner team also performed routine maintenance in
December on the primary transformer that feeds approximately 4,700
miners. The 15-day outage included replacement of the tertiary
bushings on the unit as a preventative measure to ensure long term
reliability,” added Farrell.
“The fourth quarter of 2023 demonstrated strong financial
performance across our portfolio and generated meaningful free cash
flow, which will be applied to reduce indebtedness,” said Patrick
Fleury, Chief Financial Officer of TeraWulf.
Production and Operations Update
As previously announced, the Company completed substantial
construction of Building 3 at the Lake Mariner facility in
December, which houses an incremental 45 MW of capacity and brings
operational infrastructure capacity at the Lake Mariner site to
approximately 160 MW. The infrastructure expansion and pending
deployment of the new 18,500 S19j XP bitcoin mining machines,
anticipated in February 2024, is expected to increase the Company’s
total self-mining hashrate by approximately 58% (from 5.0
EH/s to 7.9 EH/s).
Planning is underway for additional growth at Lake Mariner with
the construction of Building 4 underway. Upon planned completion in
mid-2024, Building 4 is expected to bring TeraWulf’s total
operational capacity to approximately 10 EH/s. Additionally, at the
nuclear-powered Nautilus Cryptomine facility, TeraWulf has the
option to add an additional 50 MW of bitcoin mining capacity,
bringing the Company’s total capacity at the Nautilus facility to
100 MW.
During December, the Company also announced that following the
successful pilot of a compact (NVIDIA A100) GPU system to support
generative AI and large language model applications, the Company
has initially committed a 2 MW block of power at the Lake Mariner
facility, capable of deploying thousands of latest generation GPUs,
to support a larger HPC project expected in 2024. This project is
aimed at diversifying the Company’s revenue streams by capitalizing
on its infrastructure expertise to address the rapidly growing
demand for GPU compute in the generative AI market. TeraWulf
intends to continue leveraging its existing infrastructure to
further push into the HPC and AI markets on a larger scale with
compelling returns on capital.
About TeraWulf
TeraWulf (Nasdaq: WULF) owns and operates vertically integrated,
environmentally clean bitcoin mining facilities in the United
States. Led by an experienced group of energy entrepreneurs, the
Company currently has two Bitcoin mining facilities: the wholly
owned Lake Mariner facility in New York, and Nautilus Cryptomine
facility in Pennsylvania, a joint venture with Cumulus Coin, LLC.
TeraWulf generates domestically produced Bitcoin powered by 91%
zero carbon energy resources including nuclear, hydro, and solar
with a goal of utilizing 100% zero-carbon energy. With a core focus
on ESG that ties directly to its business success, TeraWulf expects
to provide industry leading mining economics at an industrial
scale.
Forward-Looking Statements
This press release 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 historical fact,
are statements that could be deemed forward-looking statements. In
addition, forward-looking statements are typically identified by
words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,”
“anticipate,” “intend,” “outlook,” “estimate,” “forecast,”
“project,” “continue,” “could,” “may,” “might,” “possible,”
“potential,” “predict,” “should,” “would” and other similar words
and expressions, although the absence of these words or expressions
does not mean that a statement is not forward-looking.
Forward-looking statements are based on the current expectations
and beliefs of TeraWulf’s management and are inherently subject to
a number of factors, risks, uncertainties and assumptions and their
potential effects. There can be no assurance that future
developments will be those that have been anticipated. Actual
results may vary materially from those expressed or implied by
forward-looking statements based on a number of factors, risks,
uncertainties and assumptions, including, among others: (1)
conditions in the cryptocurrency mining industry, including
fluctuation in the market pricing of bitcoin and other
cryptocurrencies, and the economics of cryptocurrency mining,
including as to variables or factors affecting the cost, efficiency
and profitability of cryptocurrency mining; (2) competition among
the various providers of cryptocurrency mining services; (3)
changes in applicable laws, regulations and/or permits affecting
TeraWulf’s operations or the industries in which it operates,
including regulation regarding power generation, cryptocurrency
usage and/or cryptocurrency mining, and/or regulation regarding
safety, health, environmental and other matters, which could
require significant expenditures; (4) the ability to implement
certain business objectives and to timely and cost-effectively
execute integrated projects; (5) failure to obtain adequate
financing on a timely basis and/or on acceptable terms with regard
to growth strategies or operations; (6) loss of public confidence
in bitcoin or other cryptocurrencies and the potential for
cryptocurrency market manipulation; (7) adverse geopolitical or
economic conditions, including a high inflationary environment; (8)
the potential of cybercrime, money-laundering, malware infections
and phishing and/or loss and interference as a result of equipment
malfunction or break-down, physical disaster, data security breach,
computer malfunction or sabotage (and the costs associated with any
of the foregoing); (9) the availability, delivery schedule and cost
of equipment necessary to maintain and grow the business and
operations of TeraWulf, including mining equipment and
infrastructure equipment meeting the technical or other
specifications required to achieve its growth strategy; (10)
employment workforce factors, including the loss of key employees;
(11) litigation relating to TeraWulf, RM 101 f/k/a IKONICS
Corporation and/or the business combination; and (12) other risks
and uncertainties detailed from time to time in the Company’s
filings with the Securities and Exchange Commission (“SEC”).
Potential investors, stockholders and other readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date on which they were made. TeraWulf
does not assume any obligation to publicly update any
forward-looking statement after it was made, whether as a result of
new information, future events or otherwise, except as required by
law or regulation. Investors are referred to the full discussion of
risks and uncertainties associated with forward-looking statements
and the discussion of risk factors contained in the Company’s
filings with the SEC, which are available at www.sec.gov.
Company Contact:Jason AssadDirector of
Corporate Communicationsassad@terawulf.com(678) 570-6791
1 The Company’s share of the earnings or losses from operations
at the Nautilus Cryptomine facility is reflected within “Equity in
net income (loss) of investee, net of tax” in the consolidated
statements of operations. Accordingly, operating results of the
Nautilus Cryptomine facility are not reflected in revenue, cost of
revenue or cost of operations lines in TeraWulf’s consolidated
statements of operations. The Company uses these metrics as
indicators of operational progress and effectiveness and believes
they are useful to investors for the same purposes and to provide
comparisons to peer companies. All figures except Bitcoin
Self-Mined are estimates and remain subject to standard month-end
adjustments. 2 Includes BTC earned from profit sharing associated
with a hosting agreement that expires in January 2024 at the
Lake Mariner facility and TeraWulf’s net share of BTC produced at
the Nautilus Cryptomine facility.3 Computed as the weighted-average
opening price of BTC on each respective day the Bitcoin Self-Mined
is earned.4 Excludes 5 BTC earned via hosting profit share that
expires in January 2024.5 While nameplate inventory as of December
31, 2023 for WULF’s two facilities was 5.5 EH/s, inclusive of gross
total hosted miners, actual monthly hash rate performance depends
on a variety of factors, including (but not limited to) performance
tuning to increase efficiency and maximize margin, scheduled
outages (scopes to improve reliability or performance), unscheduled
outages, curtailment due to participation in various cash
generating demand response programs, derate of ASICS due to adverse
weather and ASIC maintenance and repair.
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