TeraWulf Inc. (“TeraWulf” or the “Company”), a leading owner and operator of vertically integrated, next-generation digital infrastructure powered by predominantly zero-carbon energy, today announced its unaudited interim financial results for the third quarter of fiscal year 2024 and provided an operational update.
Third Quarter 2024 GAAP Operational and Financial Highlights of TeraWulf
- Self-mined 442 bitcoin at the Lake Mariner Facility.
- Revenue increased to $27.1 million in Q3 2024 compared to $19.0 million in Q3 2023.
- Cost of revenue (exclusive of depreciation) increased to $14.7 million in Q3 2024 compared to $8.3 million in Q3 2023.
- Total self-mining hashrate capacity of 10.0 EH/s as of September 30, 2024, representing an increase of 100.0% relative to the same prior year period.
| Key GAAP Metrics ($ in thousands) | Three Months Ended Q3 2024 |
Three Months Ended Q3 2023 |
% Change | |||||
| Revenue | $ | 27,059 | $ | 18,955 | 42.8 | % | ||
| Cost of revenue (exclusive of depreciation) | $ | 14,660 | $ | 8,268 | 77.3 | % | ||
| Cost of revenue as % of revenue | 54.2 | % | 43.6 | % | 24.3 | % | ||
Third Quarter 2024 Non-GAAP Operational and Financial Highlights
- Self-mined 555 bitcoin across the Lake Mariner and Nautilus Cryptomine facilities, which represented a 43.4% decrease relative to in Q3 2023.
- Total value of bitcoin self-mined of $33.9 million in Q3 2024 compared to $27.6 million in Q3 2023.
- Power cost per bitcoin self-mined increased year-over-year, to $30,448 per bitcoin in Q3 2024 from $9,322 per bitcoin in Q3 2023, due to an approximate doubling in network difficulty and the bitcoin reward halving in April 2024.
- Adjusted EBITDA of $6.0 million in Q3 2024, an decrease of 33.6% from $9.0 million in Q3 2023.
| Key Non-GAAP Metrics2 | Three Months Ended Q3 2024 |
Three Months Ended Q3 2023 |
% Change | |||
| Bitcoin Self-Mined3 | 555 | 981 | (43.4 | ) % | ||
| Value per Bitcoin Self-Mined4 | $ | 61,075 | $ | 28,104 | 117.3 | % |
| Power Cost per Bitcoin Self-Mined5 | $ | 30,448 | $ | 9,322 | 226.6 | % |
| Avg. Operating Hash Rate (EH/s)6 | 8.1 | 5.0 | 62.0 | % | ||
Recent Events Subsequent to Third Quarter 2024
- Completed sale of 25% equity interest in the Nautilus joint venture to its partner, a subsidiary of Talen Energy Corporation.
- Completed construction of 2.5 MW HPC hosting proof-of-concept project at Lake Mariner.
- Entered into new, long-term ground lease agreement at Lake Mariner extending both term and land area to support the Company’s expansion into HPC hosting.
- Announced board of director approval for $200.0 million inaugural share repurchase program.
- Completed $500.0 million convertible notes offering and simultaneous repurchase of $115.0 million worth of TeraWulf shares.
Management Commentary
“The third quarter and the beginning of the fourth quarter marked a pivotal turning point for TeraWulf, as we delivered strong results across our strategic, financial, and operational objectives,” said Paul Prager, Chairman and CEO of TeraWulf. “The sale of our interest in the Nautilus joint venture not only generated a substantial return but also sharpened our focus on scaling high-performance computing at Lake Mariner. Securing an expanded ground lease with exclusive rights to 750 MW of infrastructure capacity is a significant milestone in our growth strategy. Combined with the success of our $500.0 million capital raise, we are exceptionally well-positioned to seize new opportunities in both Bitcoin mining and HPC hosting as we enter 2025.”
Prager continued, “We are excited about the surging demand for high-performance computing and the unique opportunity it presents for TeraWulf. Our power-ready energy assets offer a competitive advantage unmatched in the industry, providing a strong foundation as we scale our energy and digital infrastructure capabilities. We are focused on securing a customer contract by year-end, and remain dedicated to delivering outstanding value for our shareholders.”
Patrick Fleury, TeraWulf’s CFO added, “We are fully funded to execute our growth plans through the first half of 2025. In October, we secured $500.0 million in convertible notes financing, using $60 million for a capped call to neutralize dilution up to a share price of $12.80. Simultaneously, we repurchased $115.0 million in common stock, resulting in no effective dilution until the stock exceeds $18.00 per share. This strategic move reinforces our commitment to shareholder value and positions us for strong growth ahead.”
Operations Update
TeraWulf’s current operational Bitcoin mining capacity includes approximately 195 MW at the Lake Mariner Facility. With the ongoing reinstallation of XP miners from Nautilus, the Company expects to increase its total self-mining hash rate to approximately 8.7 EH/s in the near term.
On the WULF Compute front, TeraWulf is actively expanding its HPC hosting infrastructure at Lake Mariner. Notable milestones include the successful completion of a 2.5 MW HPC proof-of-concept project, specifically designed to support both current and next-generation GPU technologies. The construction of CB-1, a 20 MW Tier 3-grade HPC hosting facility, is progressing on schedule and is expected to be completed by Q1 2025. Preparations for CB-2, a 50 MW HPC hosting facility, are also well advanced, with key components already secured, positioning the Company for a timely launch by the end of Q2 2025.
Third Quarter 2024 GAAP Financial Results
Revenue in the third quarter of 2024 increased 42.8% to $27.1 million as compared to $19.0 million in the third quarter of 2023. This increase is attributable to a significant growth in operating self-mining hash rate as well as a higher average bitcoin price relative to the third quarter of 2023. Notably, revenue and expenses reported in the TeraWulf GAAP income statement excludes revenue and expenses from the Nautilus joint venture; the net financial impact of the Nautilus joint venture is captured within equity in net income (loss) of investee, net of tax in the condensed consolidated statements of operations.
Cost of revenue (exclusive of depreciation) in the third quarter of 2024 increased 77.3% to $14.7 million compared to $8.3 million in the third quarter of 2023. Cost of revenue (exclusive of depreciation) as a percentage of revenue increased to 54.2% in the third quarter of 2024 compared to 43.6% in the third quarter of 2023, primarily due to an approximate doubling in network difficulty and the bitcoin reward halving in April 2024, partially offset by an 62.0% increase in average operating hash rate and 117.3% increase in average value per bitcoin self-mined year-over-year.
During the third quarter of 2024, the Company repaid $75.8 million of debt to fully pay down the remaining balance on its Term Loans ahead of maturity.
