Terawulf Inc. · NASDAQ:WULF
Terawulf — Ikonics — Merger or Acquisition (June 2021)
24 slides from Terawulf's merger presentation, Jun 25, 2021
Slide 1: TeraWulf Merger Announcement
Mining powers B itcoin . TeraWulf POWERS SUSTAINABLE MINING . June 2021 Merger Announcement Nasdaq: WULF * * Pending
Slide 2: Disclaimer
This presentation is being delivered to a limited number of parties evaluating TeraWulf Inc . (“TeraWulf” or the “Company”) and is meant for informational purposes only . Any reproduction or distribution of this presentation, in whole or in part, or the disclosure of its contents, without the prior
Slide 3: Transaction Overview
TRANSACTION OVERVIEW 3 TeraWulf and IKONICS Corporation (Nasdaq: IKNX) have entered into a definitive merger agreement, paving way for a U.S. publicly traded ESG - focused bitcoin mining company with plans to use 90%+ zero - carbon energy 1) IKONICS and TeraWulf cash balances as of March 31, 2021, p
Slide 4: TeraWulf Business Overview
Expedited Time to Market Key relations and site control TERAWULF BUSINESS OVERVIEW ▪ Owned and operated mining facilities will benefit from one of the lowest electricity costs among peers ▪ Commitment to Environmental, Social, and Governance (“ESG”): dedicated 90%+ environmentally sustainable, low c
Slide 5: Investment Highlights
Provides exposure to bitcoin with a differentiated miner like TeraWulf 6 6 5 INVESTMENT HIGHLIGHTS TeraWulf plans to establish itself as a global bitcoin mining leader with (i) total expected capacity of 800 MW (1) and (ii) projected computational power in excess of 23 exahash per second (“EH/s”) by
Slide 6: TeraWulf Leads the Pack
Market Cap (USD ) (1) $3.3bn $2.9bn $2.5bn (2) $1.3bn (3) Projected Mining Capacity (4) 2022E 375 MW 257 MW 325 MW 445 MW (5) 85 MW 2023E 550 MW 500 MW Not disclosed (6) 545 MW (5) Not disclosed Projected Electricity Cost ($/kWh) $0.025 $ 0.027 (7) $ 0.022 (8) Power Sources Not disclosed Thermal The
Slide 7: TeraWulf's Competitive Advantage Drives Mining Profitability
1) Bitcoin total network hashrate (“Network Hashrate”), Management estimates and projections assume a starting Network Hashrate of 150,000 PH/s ( see Financial Overview section and Risk Factors) 2) T he block reward is cut in half after every 210,00 blocks are mined (approx. every 4 years). The late
Slide 8: Strong Commitment to ESG
STRONG COMMITMENT TO ESG x Leading governance practices x Business i ntegrity and e thics x Responsible supply c hains x Transparency and a ccountability x Currently 90%+ zero - carbon energy with target of 100% by 2028 x Environmental stewardship x Strict compliance with regulation x Health and saf
Slide 9: Growing Role of ESG in the Future of Bitcoin
GROWING ROLE OF ESG IN THE FUTURE OF BITCOIN 9 There are “two kinds of coin, blood coin from China, (and) clean coin mined sustainably in countries that use hydroelectricity, not coal” 3 “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla wi
Slide 10: Socially Responsible
SOCIALLY RESPONSIBLE TeraWulf’s social tenets , combined with b itcoin ’s ethos of decentralization, fosters a socially - responsible medium for communities around the world 3 TeraWulf’s ESG - focused mining operations will aid the zero - carbon transition to a decentralized financial system that is
Slide 11: Differentiated Power Supply and Ability to Scale
11 DIFFERENTIATED POWER SUPPLY AND ABILITY TO SCALE Unique power expertise, capabilities and track record required for efficient deployment, scale, and management of large - scale digital asset infrastructure 4 Direct access to cheap emission free electricity ▪ Long - term power supply arrangements
Slide 12: TeraWulf Offers Attractive Asset Exposure
4% 12% 26% 40% 56% 58% 4% 13% 29% 59% 101% 129% (6%) (13%) (22%) (20%) (13%) (30%) (10%) (23%) (39%) (42%) (45%) (61%) 2021E 2022E 2023E 2024E 2025E 2026E 12 TERAWULF OFFERS ATTRACTIVE ASSET EXPOSURE Cost curve leadership and mining economics provide attractive exposure to BTC price volatility, rela
Slide 13: Provides Exposure to Bitcoin with a Differentiated Miner Like TeraWulf
178 10,158 26,728 43,748 57,665 70,769 2021E 2022E 2023E 2024E 2025E 2026E PROVIDES EXPOSURE TO BITCOIN WITH A DIFFERENTIATED MINER LIKE TERAWULF 6 13 Projected Cumulative BTC M ined by TeraWulf Cumulative bitcoins mined by TeraWulf (1) TeraWulf is a Compelling Vehicle for BTC Exposure x Generates b
Slide 14: Strong Management
Executive at Beowulf Energy; previously at Evercore Partners Founder and President of Beowulf Energy; Trustee of USNA Foundation Executive at Beowulf Energy; previously energy M&A and project finance at Goldman Sachs General Counsel at Beowulf Energy; previously a corporate attorney at Paul, Weiss S
Slide 15: Financial Overview
Financial Overview
Slide 16: Financial Highlights
16 FINANCIAL HIGHLIGHTS Proven track record of scaling mining business with line of sight into 2 3 + EH/s 1 Unique access to environmentally sustainable energy and one of the lowest electricity costs among peers at $0.025 per kWh 2 Conservative initial capital requirements to scale to 800 MW (1) 3 I
Slide 17: Illustrative Mining Economics
178 9,980 16,571 17,020 13,917 13,105 2021E 2022E 2023E 2024E 2025E 2026E 0.7 7.2 13.1 19.5 22.6 23.0 2021E 2022E 2023E 2024E 2025E 2026E MW Capacity Annual Hashrate (EH/s) Hashrate Assumptions Yearly Average EH/s 50 550 700 800 800 11K 158K 201K 230K 230K Total Miners Assumes Miners 100 TH/Unit 17
Slide 18: Financial Projections
$368 $366 $582 $219 2021E 2022E 2023E 2024E 2025E 2026E $8 $354 $654 $728 $665 $706 2021E 2022E 2023E 2024E 2025E 2026E $9 $380 $700 $794 $741 $783 2021E 2022E 2023E 2024E 2025E 2026E 34 58 100 136 137 403 749 856 795 843 $10 $438 $807 $956 $931 $980 2021E 2022E 2023E 2024E 2025E 2026E 18 FINANCIAL
Slide 19: Resiliency to BTC Prices
BTC Revenue 9 2021E 2022E 2023E 2024E 2025E $20,000 $5 $292 $485 $524 $502 $30,000 6 348 579 595 504 $35,000 6 359 596 613 509 $40,000 7 366 608 625 515 $50,000 8 388 642 660 539 BTC Price $276 $20,000 $30,000 $35,000 $40,000 $50,000 25 $211 $266 $276 $283 $305 35 189 244 254 261 283 45 167 221 232
Slide 20: Well Defined Capex Plan
Pro Forma Delivery Order Order Order Order Year Ending December 31 Transaction Date Capacity MW # Of Miners Infrastructure Cost Miner Cost Year Capex EBITDA FCF Cumulative FCF Phase I 11/1/2021 75 22 $46 $108 2021E $368 $8 $20 $20 Phase II 1/1/2022 100 29 25 146 Phase III 4/1/2022 50 14 13 75 Phase
Slide 21: Clear Line of Sight to Continued Buildout
0.0 6.0 12.0 18.0 24.0 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% TeraWulf Hashrate (EH/s) % of Network Hashrate 4 /30/22 5.4 54K 142 MW 2 /28/22 36 K 800 MW 230K 6 /30/25 20 .1 201 K 21 CLEAR LINE OF SIGHT TO CONTINUED BUILDOUT 4/30/21 Follow - on #1 TeraWulf Hashrate and Share of Network Hashrate Installe
Slide 22: Summary Financial Projections
Year ending December 31 2021E 2022E 2023E 2024E 2025E 2026E 2027E BTC Revenue $7 $403 $749 $856 $795 $843 $879 Data Center Revenue 3 34 58 100 136 137 140 Total Revenue $10 $438 $807 $956 $931 $980 $1,018 Power Expense (1) (56) (103) (158) (186) (192) (196) Pool Fees (0) (2) (4) (4) (4) (4) (4) Gros
Slide 23: Selected Risk Factors
SELECTED RISK FACTORS Risks Relating to Our Business and Management • We have a limited operating history and a history of operating losses, and expect to incur significant additional operating loss es . • We depend on our senior management team, and the loss of their services would have a material
Slide 24: Mining Powers Bitcoin. TeraWulf
Mining powers Bitcoin. TeraWulf POWERS SUSTAINABLE MINING . info@TeraWulf.com Merger Announcement