Self-mined 157 Bitcoin in January 2023, a
>25% increase over December 2022
Deployed fleet of 18,000 miners exceeding hash
rate capacity of 2.0 EH/s as of January 31, 2023
Energization of the Nautilus Cryptomine
facility remains on track for Q1 2023
Continued focus on expanding to 5.5 EH/s of
operating capacity with 50,000 self-miners
Average power cost per Bitcoin of $9,470 in
January 2023 reinforcing industry-leading power costs
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 provided an unaudited monthly production and operations
update for January 2023.
January 2023 Highlights
- Self-mined 157 Bitcoin in January 2023, an increase of more
than 25% from December 2022.
- Deployed fleet of 18,000 miners that consistently achieved hash
rate capacity of +2.0 EH/s with self-owned miners delivering nearly
100% operational uptime.
- Power cost decreased in January 2023 to approximately
$0.052/kWh, compared to approximately $0.060/kWh in December 2022
following the return to more normalized weather.
- The Company continues to target a blended average cost of power
of approximately $0.035/kWh, comprised of approximately $0.045/kWh
at the Lake Mariner facility and a fixed, five-year contracted rate
of $0.02/kWh at the Nautilus Cryptomine facility.
Key Metrics
October
2022
November
2022
December
2022
January
20231
Bitcoin (Self-Mined)
119
134
125
157
Self-Mining Revenue ($M)
$2.3
$2.4
$2.1
$3.1
Hosting Revenue ($M)
$0.9
$0.7
$0.6
$0.7
Power Cost ($M)
$2.0
$1.4
$2.2
$2.0
Avg. Operating Hash Rate (EH/s)
1.6
1.9
1.5
2.0
Revenue per Bitcoin
$19,646
$17,617
$17,005
$19,930
Power Cost per Bitcoin
$11,060
$6,151
$12,984
$9,470
1 January 2023 results are based on
estimated power costs, which remain subject to standard month end
adjustments.
“TeraWulf made remarkable operational advancements in January as
we continued to make significant progress towards expanding
capacity at Lake Mariner with the addition of Building 2, and
energization of the Nautilus Cryptomine facility, which will be the
first behind the meter bitcoin mining facility utilizing low cost,
zero-carbon nuclear power at scale in the U.S.,” stated Paul
Prager, Co-founder and Chief Executive Officer of TeraWulf.
“In 2023, our plan is to aggressively expand and efficiently
operate our deployed hash rate as we receive and install the
remaining miner shipments and ramp our two Bitcoin mining
facilities with the goal of reaching 5.5 EH/s of sustainable,
low-cost operating capacity in early Q2 2023,” added Paul
Prager.
Production and Operations Update
As of January 31, 2023, the Company operated approximately
18,000 Bitcoin miners with hash rate capacity of approximately 2.0
EH/s at its Lake Mariner facility. Of these miners, approximately
11,500 are wholly owned with a hash rate capacity of approximately
1.4 EH/s. The remaining approximately 6,500 miners are hosted, for
which the Company receives a hosting fee and share of the mining
profit.
During the month of January, the Company received approximately
6,100 miners from Bitmain Technologies Limited (“Bitmain”) and is
scheduled to receive an additional 15,900 miners in Q1 2023, which
will result in a total of approximately 34,000 miners at its Lake
Mariner facility and 16,000 miners at its Nautilus facility.
Delivery of the remaining miners will conclude TeraWulf’s existing
miner purchase agreements with Bitmain and is expected to fully
utilize the Company’s 160 MW of infrastructure capacity available
in early Q2 2023.
TeraWulf’s power cost in January 2023 corrected to more
normalized levels following severe weather and price volatility in
late December 2022. Increasingly supportive market fundamentals,
forward power curves, and near-term energization of the Nautilus
Cryptomine facility (with a fixed power cost of $0.02/kWh)
reinforce the Company’s targeted average power cost of
approximately $0.035/kWh in 2023.
“These severe weather events highlight why location is so
critical and we built where there’s plenty of zero-carbon, baseload
energy to maintain our advantage over the long run. That’s what you
are seeing when our power costs drop so quickly after major weather
events,” said Kerri Langlais, Chief Strategy Officer of TeraWulf.
The Company also finalized its enrollment in two additional
ancillary service programs with the New York Independent System
Operator (NYISO). “We continue to focus on innovative ways for our
business to help make the grid more resilient,” Langlais added.
Infrastructure and Miner Energization Update
As previously reported, the Company is in the final stages of
construction at its two Bitcoin mining sites and expects to have a
total operational capacity of 50,000 miners (5.5 EH/s) in early Q2
2023, representing approximately 160 MW of power demand. Today, the
Company’s wholly-owned Lake Mariner facility has approximately 60
MW of operational mining capacity, and TeraWulf expects to reach
110 MW of capacity at the facility in early Q2 2023. The Nautilus
Cryptomine facility, a joint venture with Talen Energy Corporation,
is in the initial stages of ramping its mining operations and is
expected to provide 50 MW of net mining capacity to TeraWulf in Q2
2023, representing the Company’s 25% interest in the joint
venture.
Expansion at Existing Sites
TeraWulf is currently evaluating options for utilizing
approximately 130 MW of available expansion capacity at its
existing sites for further hash rate growth. The Lake Mariner
facility has 80 MW of near-term expansion capability with the
addition of Building 3 and utilization of existing warehouse space,
for which the Company has already commenced development activities.
TeraWulf also retains an option to expand its net capacity at the
Nautilus facility by an additional 50 MW.
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 is currently operating and/or completing construction of
two mining facilities: Lake Mariner in New York, and Nautilus
Cryptomine in Pennsylvania. 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; (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) 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); (8) 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; (9)
employment workforce factors, including the loss of key employees;
(10) litigation relating to TeraWulf, RM 101 f/k/a IKONICS
Corporation and/or the business combination; (11) the ability to
recognize the anticipated objectives and benefits of 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230207006055/en/
Company Contact: Sandy Harrison harrison@terawulf.com
(410) 770-9500
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