Terawulf Inc. · NASDAQ:WULF
Terawulf — Merger or Acquisition (October 2024)
14 slides from Terawulf's merger presentation, October 2024
Slide 1: The Power of Infrastructure: Nautilus Transaction Overview
The Power of Infrastructure Nautilus Transaction Overview October 2024 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation is for informational purposes only and 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 ant
Slide 3: Nautilus Transaction Overview
Nautilus Transaction Overview WULF sells 25% equity interest in Nautilus to Talen Energy Strategic Rationale Strong Financial Returns: MOIC exceeding 3.4x and substantial premium based on the NPV of the remaining lease term ~$92 Million 3.4x Transaction Proceeds (1) Multiple on Invested Capital (2)
Slide 4: Reduced Risk Exposure
Reduced Risk Exposure After the PPA expires in 2027, power prices at Nautilus are anticipated to exceed those at Lake Mariner Long-Term Savings in NYISO Zone A vs PJM West Hub $60.0/MWh $50.0/MWh $40.0/MWh $30.0/MWh $20.0/MWh $10.0/MWh $0.0/MWh (2) 2025 2026 2027 2028 2029 2030 2031 2032 2033 NYISO
Slide 5: Expanded Mining Operations
Expanded Mining Operations In connection with the Nautilus Increased hashrate with operational efficiencies and reduction in cost sale, WULF will receive ~30k Talen miners 16.0 14.0 14.4k S21 Pros deployed in MB-5 WULF plans to monetize >80% 13.1 of the Nautilus miners and all 12.0 A temporary r
Slide 6: Enhanced Mining Fleet
Enhanced Mining Fleet Fleet Summary Model Hash Rate Efficiency J/TH Current Fleet (1) Cumulus Miners Buy / (Sell) (3) + Building 5 PF Fleet PF Capacity S21 Pro (2) 234 15.0 5,000 7,400 14,400 26,800 6.3 TH S21 195 17.9 5,000 5,000 1.0 TH S19 JXP/XP 141 21.5 32,800 5,200 38,000 5.3 TH S19K Pro 117 23
Slide 7: Superior Opex Efficiency
Superior Opex Efficiency TeraWulf’s allocable share of annual opex Wholly-owned Minority interest (25%) for its 50 MW of 195 MW operational 50 MW operational mining at Nautilus is Annual OpEx: ~$6.75M Annual Alloc. OpEx: $~6.75M roughly equivalent to the annual opex to run VERSUS… 200 MW
Slide 8: 2024 Capital Allocation
2024 Capital Allocation Increased liquidity for HPC growth; 20 MW CB-1 capex is fully funded $160.0 $140.0 $11.5 $86.3 $120.0 ($25.0) $100.0 ($15.5) $80.0 ($10.5) ($82.8) $60.0 $40.0 $12.0 $24.0 $20.0 $0.0 Q4 2024E Cash Flow (1) Miner Sales MB-5 Infrastructure CB-1 Capex (4) Q3 2024E Cash Balance Na
Slide 9: 2025 Capital Allocation: The Inflection Point
2025 Capital Allocation: The Inflection Point HPC/AI contracts are projected to unlock substantial platform value $500.0 $260.0 $450.0 $400.0 ($56.5) $350.0 $300.0 $250.0 $105.0 $200.0 $150.0 $100.0 $95.0 $90.5 ($313.0) $50.0 $0.0 2025E Cash Flow (1) HPC Revenue Prepay (2) Project Financing (3) MB-5
Slide 10: Illustrative HPC Timeline
Illustrative HPC Timeline WULF Den: 2.5 MW 500.0 operational in Q3 2024 500 450 CB-1: 20 MW capacity 400 expected to be operational in 250 Q1 2025 350 Capacity (MW, gross) (1) 300 CB-2: 50 MW expected to be operational in Q2 2025 250 200 Additional 178 MW expected 150 178 to be available in
Slide 11: Transaction Summary
Transaction Summary Fuels expansion of HPC/AI and bitcoin mining at Lake Mariner, positioning WULF for substantial value creation CB-1 construction capex fully funded 1. Further aligns WULF’s focus and investments with where it has the most operational efficiency and greatest growth potential 2. All
Slide 12: Appendix
APPENDIX 12
Slide 13: Updated Guidance
Updated Guidance Continued improvement in Cost-to-Mine Metrics Full Year Q3 2024E Q4 2024E Q1 2025E 2024E Illustrative Market Inputs: Network Hash Rate (EH/s) 650 650 Transaction Fees (%) 3.0% 3.0% Illustrative Operating Inputs: Miner Fleet Efficiency (J/TH) [1] 21 19 Total Hash Rate (EH/s) 9.3 13.2
Slide 14: Nautilus PPA Mark-to-Market
Nautilus PPA Mark-to-Market 2024 2025 2026 2027 Energy Margin Total MW's 50 50 50 50 Capacity Factor 100% 100% 100% 100% Net Generation (MWh's) 109,500 438,000 438,000 237,250 PJM West ATC Market Power Price ($/MWh) $40.56 $46.37 $48.91 $50.53 Susquehanna Node Basis Differential ($/MWh) (2.00) (2.00