Terawulf Inc. · NASDAQ:WULF
Terawulf — Q1 2024 Earnings Presentation
22 slides from Terawulf's earnings presentation, May 13, 2024
Slide 1: Forward Investor Update May 2024
Forward Investor Update May 2024
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 igation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning antici
Slide 3: ➢ ➢ ➢ ➢ ➢ ➢ Note: Figures represent illustrative estimates. WULF Compute metrics
➢ ➢ ➢ ➢ ➢ ➢ Note: Figures represent illustrative estimates. WULF Compute metrics represent range for white space or rack ready colocation for illustrative purposes only.
Slide 4: Rapidly scaling since inception with significant owned capacity for growth
4 ➢ Owned infrastructure to scale flexibly ➢ Lowest cost producer of BTC ➢ Sustainable: 100% zero-carbon target ➢ ESG is core to operations, risk mitigation, and reputational value ➢ 8 EH/s deployed and 210 MW operational ➢ Target 295 MW operational by YE 2024 ➢ Additional 300 MW of growth capacity
Slide 5: ➢ ➢ ➢ ➢ ➢ (1) Source: NYISO Power Trends 2023 report (https://www.nyiso.com/power-trends). (2)
➢ ➢ ➢ ➢ ➢ (1) Source: NYISO Power Trends 2023 report (https://www.nyiso.com/power-trends). (2) Reflects TeraWulf’s 50 MW interest in the Nautilus Cryptomine facility and option to expand by 50 MW, which the Company exercised in February 2024. 5 ➢ ➢ ➢
Slide 6: Strategically located in regions with significant energy surplus
Strategically located in regions with significant energy surplus 6 ✓ ✓ ✓ ✓ ✓ ✓
Slide 7: Lowest-cost producer of Bitcoin with large-scale infrastructure optionality
Lowest-cost producer of Bitcoin with large-scale infrastructure optionality ➢ Existing sites have more than 300 MW of available capacity to expand ➢ Attractive site strategically positioned to support other forms of compute ➢ Achieved $0.032/kWh all-in power cost in 2023 ➢ Target $0.035/kWh all-in p
Slide 8: Achieved record free cash flow generation
Achieved record free cash flow generation 8 Metric Amount Comments End of Period Hash Rate 8.0 EH/s ➢ 167% increase year-over-year Bitcoin Produced 1,057 ➢ 11.6 BTC per day; +8% over Q423; +110% over Q123 Power Cost $0.041/kWh ➢ Represents power cost per BTC of $15,501 Revenue (1) $42.4 million ➢ Va
Slide 9: All figures include WULF's net share of Nautilus operations
All figures include WULF’s net share of Nautilus operations 9 514 889 980 959 1,051 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 3.3 5.5 5.5 5.5 8.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $8.7 $19.4 $18.7 $25.0 $40.5 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 ($2.3) $7.6 $9.0 $16.4 $32.0 Q1 2023 Q2 2023 Q3
Slide 10: Greatly improved balance sheet and liquidity
10 ➢ Approximately $106 million of debt and $46 million of cash at March 31, 2024 ➢ Principal repayments in Q2 2024 reduced debt further to $76 million ➢ Company anticipates additional repayment of $15-$20 million in early Q3 2024 ➢ $8.1 million of annual interest savings from debt repaid since Q4 2
Slide 11: TeraWulf delivers more profitability with less dilution than any of its peers
TeraWulf delivers more profitability with less dilution than any of its peers 11Source: Public filings and publicly available earnings transcripts, and good faith calculations by WULF based thereon. Note: Core Scientific emerged from bankruptcy in January 2024; 1Q 2024 stock-based comp does not refl
Slide 12: Plan to repay debt with free cash flow and expand mining to over 10 EH/s
Plan to repay debt with free cash flow and expand mining to over 10 EH/s; maintain optionality for future growth 12 (1) Reflects cash balance as of April 30, 2024, and assumes market price of BTC of $60,637 as of April 30, 2024. (2) Assumes average BTC price and network hash rate of $75,000 and 600
Slide 13: Realized cost-to-mine of ~$29k in Q1 2024; projected ~$40k for balance of 2024
Realized cost-to-mine of ~$29k in Q1 2024; projected of ~$40k for balance of 2024 13 Q1 2024 [1] Q2 2024 [2] 2H 2024 Full Year 2024 Illustrative Market Inputs: Network Hash Rate (EH/s) 630 630 Transaction Fees (%) 10% 10% Illustrative Operating Inputs: Miner Fleet Efficiency (J/TH) [3] 25.6 23.7 Tot
Slide 14: Optimizing land, MWs and capital for the most efficient long-term value creation
Optimizing LAND, MWs and CAPITAL for the most efficient long-term value creation 14 Cloud Service Provider Colocation – Whitespace & Rack Ready Build to Suit Description Shell data center and GPU clusters; space, power, cooling, fiber/internet, security, compute, storage and environment. Shell data
Slide 15: Significant mismatch in data center demand and power growth
Significant mismatch in data center demand and power growth – increasing the value of land and power assets ➢ Electricity demand growth driven largely by GenAI and data centers significantly outpacing the expected supply growth of available power capacity ▪ Over time, the imbalance will continue to
Slide 16: f
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Slide 17: TeraWulf is led by an accomplished, diverse management team
TeraWulf is led by an accomplished, diverse management team with 30+ years of experience in developing and managing energy infrastructure and disruptive technology N A Z A R K H A N Co-Founder, Chief Operating Officer & Chief Technology Officer 20+ years in energy infrastructure and cryptocurrency m
Slide 18: As of May 10, 2024 Note: all figures are approximate.
As of May 10, 2024 18 Note: all figures are approximate.
Slide 19: Highly efficient fleet drives profitability
19 (1) Includes WULF’s net share of miners contributed to Nautilus JV. (2) Miner orders to be installed 2H 2024 (3) Figures include 4% ancillary load, nameplate efficiency of miners alone is 27.6 J/TH for 23E, 24.6 J/TH for 2Q 24, and 22.8 for 2H 24 Model Quantity Hash Rate Efficiency J/TH S19 J/J-P
Slide 20: Annual guidance of 3.5 cents per kWh average cost of power
$0.032 $0.025 $0.017 $0.031 $0.061 $0.032 $0.033 $0.040 $0.042 $0.040 2018 2019 2020 2021 2022 2023 2024E 2025E 2026E 2027E Actual Projected Average $3.5 ¢ per kWh76% 24% Capacity (210 MW) Lake Mariner Nautilus $0.040 $0.020 Power Cost ($/kWh) Lake Mariner Nautilus Blended Power Cost (incl. Demand R
Slide 21: Lake Mariner Data Center
Lake Mariner Data OS | @ Barker, NY 2. 100% Owners! Long-Term , 500 MW of Lease A“ Infrastructure Capacity M 93%+ Zero-Carbon Hydro & Nuclear Power Sy Y 160 MW Operational % ¥ 85 MW Under Construction S ¥ Target of 250 MW Deployed in 2024 G v Target of 500 MW Deployed in 2025 @rTerawutr
Slide 22: Nautilus Cryptomine
Nautilus Cryptomine Berwick, PA aE 25% JV with ) Talen Energy Long-Term {. 100 MW of | ~ Lease Infrastructure Capacity G 100% Zero-Carbon Nuclear Power Z y¥ 50 MW Operational q vy 50 MW Planned Expansion in 2025 @teRawutr