TeraWulf Announces $22 Million Debt Repayment and Increase in Self-Mining Capacity
February 15 2024 - 7:00AM
TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which
owns and operates vertically integrated, domestic Bitcoin mining
facilities powered by more than 91% zero-carbon energy, today
announced it has surpassed a total self-mining hashrate of 7.6 EH/s
and has repaid an additional $22 million of its Term Loan,
thereby extending the cash flow sweep to maturity.
Recent Operational and Financial
Achievements
- Total self-mining
hashrate reached 7.6 EH/s as of mid-February, with the Company
projecting an increase to 8 EH/s by the end of Q1 2024.
- The completion of
Building 4 (35 MW) at the Lake Mariner facility is anticipated to
increase TeraWulf’s overall operational capacity to approximately
10 EH/s by mid-2024.
- Repaid a total of
$40 million in debt to date, thereby extending the cash flow sweep
to maturity of Term Loan.
- Expect another
significant debt repayment in early April with cash generated in Q1
2024.
Management Commentary
“Over the past year, we have remained resolute in fulfilling our
commitment to deleveraging, marking a significant financial
milestone for the Company. With our industry-leading cost to mine
bitcoin, we are poised to achieve another substantial debt
repayment in the first week of April from the cash generated in the
first quarter. This swift debt reduction underscores our confidence
in the efficacy of our financial and strategic approaches, as well
as the successful execution of our expansion initiatives," stated
Patrick Fleury, Chief Financial Officer.
Fleury continued, "Using our website's innovative 'Cost-to-Mine
Calculator'1 and the guidance outlined in our July Investor
presentation, combined with a bitcoin price of $50,000 and a
network hashrate of 580 EH/s, we estimate our total mining cost to
be approximately $25,000 per BTC. This positions us favorably to
generate substantial cash flow in the first quarter and execute
another significant debt repayment in April.”
Paul Prager, Chief Executive Officer, underscored, “We have
maintained unwavering financial discipline and, as promised,
accelerated the paydown of our debt while advancing organic growth
at our existing sites with the target of having 300 MW of
infrastructure capacity in operation by year-end 2024 and 550 MW in
2025.” Prager added, “Closing out 2023 with a cash reserve
exceeding $50 million, we harbor significant confidence in
TeraWulf's strategic positioning, both in anticipation of the
halving and over the long term.”
About TeraWulf
TeraWulf 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
nuclear, hydro, and solar energy 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 offer attractive 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 TeraWulf’s Cost-to-Mine Calculator can be accessed on its
website at
https://investors.terawulf.com/financial-information/cost-to-mine-calculator.
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