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
January 2024.
January 2024
Highlights
- Self-mined 313 bitcoin in January
with an average production rate of over 10 bitcoin per day.
- Power cost averaged $16,737 per
bitcoin self-mined, or approximately $0.05/kWh in January, which
excludes the benefit of demand response or ancillary services
revenue.
- Building 3 at Lake Mariner was fully
deployed at month end, utilizing roughly two thirds of the
Company’s recently purchased 2.8 EH/s of S19j XPs. The balance of
the S19j XP purchase is planned to be installed by early February
to consume open infrastructure capacity as it becomes available in
connection with the nearing expiration of the Company’s only
hosting agreement.
- Strategically deployed performance
tuning, including efficiency mode and selective miner curtailment,
during the week of elevated energy pricing mid-January, in addition
to overclocking to increase hash when energy pricing
normalized.
Key Metrics 1 |
January 2024 |
Bitcoin Self-Mined 2 |
|
313 |
Value per Bitcoin Self-Mined 3 |
$42,810 |
Power Cost per Bitcoin Self-Mined 4 |
$16,737 |
Avg. Operating Hash Rate (EH/s) 5 |
|
5.4 |
Management Commentary
“During January, the Company mined 313 bitcoin, a slight
decrease from December’s bitcoin production, due to increased
average difficulty and lower transaction fees month-over-month, as
well as opportunistic miner performance tuning, which was done to
maximize margins during days with seasonally elevated power prices
due to colder than average temperatures in upstate New York.
Despite the cold snap, our team worked tirelessly throughout the
month to deploy the S19j XP deliveries in line with our February 1
target,” said Sean Farrell, SVP of Operations at TeraWulf.
“We continue to explore firmware and third-party solutions to
further improve performance, and testing has shown up to a 10%
increase in output while maintaining stock efficiency,” added
Farrell.
Production and Operations Update
With the energization of Building 3 (45 MW) at the Lake Mariner
facility in January, operational infrastructure capacity at the
Lake Mariner facility increased to approximately 160 MW and
TeraWulf’s total self-mining hashrate reached 7.1 EH/s as of
month-end January. The Company expects to deploy an additional
5,000 S19j XPs at Lake Mariner in early February, which will
increase TeraWulf’s self-mining hashrate by an additional 10% (from
7.2 EH/s to 7.9 EH/s).
Construction of Building 4 (35 MW) at the Lake Mariner facility
is well underway and remains on track to be completed by mid-2024,
which will provide over 12,000 additional miner slots, which would
further increase TeraWulf’s total operational capacity to
approximately 10 EH/s.
As previously announced, the Company is pursuing a potential
large-scale HPC project at the Lake Mariner site and has committed
an initial 2 MW block of power, capable of deploying thousands of
the latest generation GPUs.
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 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
indictors 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 bitcoin earned from profit sharing
associated with a hosting agreement at the Lake Mariner facility
and TeraWulf’s net share of bitcoin mined at the Nautilus
Cryptomine facility, based on hashrate share attributed to the
Company.3 Computed as the weighted-average opening price of bitcoin
on each respective day the Bitcoin Self-Mined is earned.4 Excludes
5 bitcoin earned from profit sharing associated with a hosting
agreement.5 While nameplate inventory as of January 31, 2024 for
WULF’s two facilities is estimated at 7.2 EH/s, 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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