Terawulf Inc. · NASDAQ:WULF
Terawulf — Investor Presentation (September 2022)
24 slides from Terawulf's investor presentation, Sep 12, 2022
Slide 1: An Infrastructure-Focused Mining Company
1 NASDAQ: WULFSeptember 2022An Infrastructure-Focused Mining CompanyAccelerating the Transition to a Zero-Carbon Future
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Thispresentationisforinformationalpurposesonlyandcontainsforward-lookingstatementswithinthemeaningofthe"safeharbor"provisionsofthePrivateSecuritiesLitigationReformActof1995,asamended.Suchforward-lookingstatementsincludestatementsconcerninganticipatedfutureeventsandexpectationst
Slide 3: Our Mission and Core Values
Our MissionTo be the premier U.S. based, large-scale, zero-carbonbitcoin miner,generating attractive investorreturnswhile providingsustainable benefits forourcommunities. Experienced Energy EntrepreneursInfrastructure FirstScalable and FlexibleTransparent Governance Business IntegrityRespon
Slide 4: TeraWulf at a Glance
(1)Average estimated bitcoin production cost assumes miner efficiency of 28.9 J/TH and global network hash rate of 217 EH/s. (2)91% hydro-electric power. (3)Future targets reflect anticipated infrastructure capacity based on current expectations and market conditions and are subject to change. TeraW
Slide 5: Significant Progress Establishing Mining and Digital Infrastructure
Mar2022Feb2021Mar2021May2021Jun2021Dec2021 TeraWulf Formed Lake Mariner approved for NYPA’s HLF Program(3)$30M seed equity financingSEC Merger Review Process$50M equity financing Formed JV with Talen for 300 MW Nautilus facility in PACompleting buildout of two state-of-the-art, zero-carbon data cen
Slide 6: Why WULF Wins: The Four P's
Why WULF Wins: The Four “P’s”Digital Asset Infrastructure FirstFoundation to Scale Experienced Energy EntrepreneursPower & InfrastructureExpertsSustainable, Scalable FacilitiesKey Relationships & Site ControlESG Principled and PracticedDriving the Future of Bitcoin Mining6 PlugsPeoplePowerPriorities
Slide 7: People: Best-in-Class Management Team
People: Best-in-Class Management TeamLed by an accomplished, diverse management team with 30+ years of experience in developing and managing energy infrastructureand disruptive technology N A Z A R K H A NCo-Founder, Chief Operating Officer & Chief Technology Officer20+ years in energy infrastructur
Slide 8: Power: Sustainable and Scalable Sites
Power: Sustainable and Scalable Sites200 MWAdditional capacity option in 2023> 91%Zero-carbon power supply today, with goal of achieving 100%3.5 ¢ Per kilowatt hour targeted average power cost8 91%+ Zero Carbon(1)110 MW Available Exiting 2022500+ MW Hydro, Solar 100% Zero Carbon65 MW Available in 1Q
Slide 9: Priorities: ESG Sits at TeraWulf's Core
Positively impacting theenvironment through our operations SOCIALDiverse management team Strong service culture with emphasis on supporting veteransTrack record of stakeholder engagement and supporting communitiesFunding and participating in social health, environmental, and sustainability initi
Slide 10: Capital Raising Activity
(1)Includes $15M first draw of debt from the $50M add-on facility from existing lenders.(2)Capital need of $30M -$45M is dependent on market conditions. Consistent with prior capital raises, management intends to participate alongside investors in the planned growth capital raise.(3)Reflects all ATM
Slide 11: Sources and Uses: Capital Overview
$8 $32 $25 $17 $30 $15 EquipmentInfrastructureOther ExpensesGross Margin OffsetCapital NeedSources and Uses: Capital Overview•Deployed $360M as of September 2022–$89M invested in infrastructure–$187M invested in mining equipment–Balance includes fees and other expenses, interest expense and SG&A•$30
Slide 12: Current Business Outlook
(1)Future estimates reflect anticipated infrastructure capacity based on current expectations and market conditions and are subjectto change. All figures reflect TeraWulf’s 33% JV interest in the Nautilus Cryptomine. (2)Hash rate range reflects a blend of 100 and 140 TH/s miners, with 31.5 and 21.5
Slide 13: Infrastructure First Model: Illustrative Annual Gross Margin
3.5 EH/s Self-Mining and 2.3 EH/s HostingPeriod Ending BTC Price(2)$15,000 $25,000 $35,000 $45,000 $55,000 $65,000 $75,000 Period Ending Global Hash Rate(1)(EH/s)200$87 $125 $164 $202 $241 $279$317225$80 $115 $151 $186 $222 $257$293250$73 $106 $140 $173 $206 $239$272275$68 $99 $130 $161 $192 $223$25
Slide 14: Infrastructure and Miner Deployment
FacilityTotal CapacityContractedSelf-MiningHost-to-Own DeployedAvailable Capacity(2)MinersEH/sMinersEH/sMinersEH/sMinersEH/sLake Mariner(3)34,0003.814,5001.9(1)5,0000.514,5001.5Nautilus Cryptomine(4)20,0002.017,0001.7003,0000.3Total54,0005.831,5003.55,0000.517,5001.8 Prioritizing plugs and infrastru
Slide 15: Illustrative Power Cost Impact per BTC
Electricity Opex & O/H Miners Note: For illustrative purposes only.(1)Assumed cost of power based upon estimated cost for an asset light bitcoin miner.(2)Network hash rate reflects BitOodaestimate for 2023 average hash rate as of April 28, 2022. https://www.bitooda.io/public-files/20220428 BitOodaWe
Slide 16: TeraWulf is an Emerging Leader in Digital Asset Infrastructure
TeraWulf is an Emerging Leader in Digital Asset Infrastructure•Best-in-class Bitcoin mining due to low-cost, sustainable, and domestic bitcoin mining at industrial scale targeting zero-carbon energy leveraging nuclear, hydro, and solar resources•Vertically integrated, infrastructure first strategy e
Slide 17: Site Overviews
SITE OVERVIEWS
Slide 18: Lake Mariner Data (NY)
Lake Mariner Data (NY) 18 Location:Barker, NYOwnership:100%Site Control:Long-term leaseInfra. Capacity:•500 MW future potential•110 MW online YE 2022Power Source:91%+ hydroDeployment:•60 MW completed and energized•Additional 50 MW expected online Dec 2022Miners(1):•12,000 S19 XP•2,500 S19 J-Pro(1)Re
Slide 19: New York Regulatory Environment
New York Regulatory Environment“NYPA is pleased to propose working with Lake Mariner Data, LLC to have 7725 Lake Road, Barker, NY participate in demand response programs in 2022, supporting TeraWulf’s goal to become a zero-carbon emissions crypto mining company.”New York Power Authority, April 2022
Slide 20: Lake Mariner: Locational Advantages
Lake Mariner: Locational Advantages 20Access to abundant low-costhydro power and congestion dynamics mute impact of natural gas pricesSource: Cap IQ Energy Map Lockport CC capacity factor: 8.1% (2020) Indeck Silver Springs CC capacity factor: 8.5% (2020) Fortistar North Tonawanda CC: 3.7% (2020) •Ef
Slide 21: Lake Mariner: Demand Response Programs Provide Upside
(1)The above information is for general information purposes only. Estimated annual Revenue is for illustrative purposes only and should not be considered projections of TeraWulf’s operating performance. Sources include NYPA and independent service providers: http://icap.nyiso.com/ucap/public/auc_vi
Slide 22: Nautilus Cryptomine (PA)
Nautilus Cryptomine (PA) 22 Location:Berwick, PAOwnership:33% (JV with Talen)Site Control:Long-term leaseInfra. Capacity(1):•115 MW (net) future potential•65 MW (net) online in 1Q 2023Power Source:Nuclear powerDeployment:Completing constructionMiners(2):•12,500 S19 J-Pro (net)•4,500 MV7 (net) (1)Ref
Slide 23: Nautilus: Facility Design Advantages
Nautilus: Facility Design Advantages 23Reliable behind-the-meter zero-carbon energy •Data center design with extra redundancy and reliability to maximize online miner capacity•Both inlet and outlet air cooling (i.e., “push/pull”)•Robust building management system to optimize temperature control and
Slide 24: Contact
NASDAQ: WULFContact:ir@terawulf.comwww.TeraWulf.com/contact