Terawulf Inc. · NASDAQ:WULF
Terawulf — Merger or Acquisition (June 2021)
24 slides from Terawulf's merger presentation, June 2021
Slide 1: Mining powers Bitcoin. TeraWulf powers sustainable mining.
Mining powers Bitcoin. TeraWulf POWERS SUSTAINABLE MINING. Merger Announcement June 2021 Nasdaq: WULF* * Pending
Slide 2: Disclaimer
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 t
Slide 3: Transaction Overview
TRANSACTION OVERVIEW 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 TeraWulf to merge with IKONICS Corporation (Nasdaq: IKNX) through
Slide 4: TeraWulf Business Overview
TERAWULF BUSINESS OVERVIEW TeraWulf is a leading sustainable bitcoin (“BTC”) mining company that maximizes the energy-to-crypto value chain through power supply optimization Owned and operated mining facilities will benefit from one of the lowest electricity costs among peers Commitment to Envir
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS 1 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 2025(2) 2 Strong position on the global cost curve underpinned by direct ac
Slide 6: TeraWulf Leads the Pack
1 TERAWULF LEADS THE PACK Control of mining value chain, ample low-cost sustainable power, and operating expertise sets TeraWulf apart from its public peers TeraWulf Lead Market Cap $3.3bn $2.9bn $2.5bn(2) $1.3bn(3) (USD) (1) Projected 2022E 375 MW #1(5) 257 MW 325 MW 445 MW(5) 85 MW Mining Capacity
Slide 7: TeraWulf's Competitive Advantage Drives Mining Profitability
2 TERAWULF’S COMPETITIVE ADVANTAGE DRIVES MINING PROFITABILITY Industrial-scale mining facilities will be directly connected to low-cost sustainable energy BEST-IN-CLASS AVERAGE REVENUES 100+ TeraWulf BTC Price Global Mining Rewards 90-100 Hashrate x x Higher Efficiency (hashes per joule) 6.25 52,56
Slide 8: Strong Commitment to ESG
3 STRONG COMMITMENT TO ESG ESG is at the core of TeraWulf’s corporate strategy and ties directly to its business success, risk mitigation and reputational value Currently 90%+ zero-carbon energy Health and safety are #1 priority with target of 100% by 2028 Diverse Management team Environment
Slide 9: Growing Role of ESG in the Future of Bitcoin
3 GROWING ROLE OF ESG IN THE FUTURE OF BITCOIN Recent scrutiny in ESG status of sources of energy powering bitcoin mining suggests significant market demand and opportunity for alternative solutions Elon Musk Announced that Tesla has suspended vehicle Totaling up BTC’s Environmental Costs Where Are
Slide 10: Socially Responsible
3 SOCIALLY RESPONSIBLE TeraWulf’s social tenets, combined with bitcoin’s ethos of decentralization, fosters a socially-responsible medium for communities around the world TeraWulf’s Social Tenets The Social Case for Bitcoin Healthy Demand for Social Good Employees Driven to put their dollars towards
Slide 11: Differentiated Power Supply and Ability to Scale
4 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 Direct access to cheap emission free electricity TeraWulf expected to reach 800 MW by 2025 sou
Slide 12: TeraWulf Offers Attractive Asset Exposure
5 TERAWULF OFFERS ATTRACTIVE ASSET EXPOSURE Cost curve leadership and mining economics provide attractive exposure to BTC price volatility, relative to less competitive mining peers and buying and holding BTC alone Leadership on Cost Curve is a Competitive Advantage Clear Line of Sight(3) Illustrati
Slide 13: Provides Exposure to Bitcoin with a Differentiated Miner Like TeraWulf
6 PROVIDES EXPOSURE TO BITCOIN WITH A DIFFERENTIATED MINER LIKE TERAWULF TeraWulf is a Compelling Vehicle for BTC Exposure Projected Cumulative BTC Mined by TeraWulf Generates bitcoins over useful life of mining equipment Cumulative bitcoins mined by TeraWulf(1) 70,769 - Opportunity to create incr
Slide 14: Strong Management
STRONG MANAGEMENT TeraWulf’s executive team has 30+ years of experience in technology, energy, and infrastructure facilities management and development PAUL PRAGER NAZAR KHAN KERRI LANGLAIS KEN DEANE STEFANIE FLEISCHMANN CEO COO CSO CFO CLO Founder and President of Executive at Beowulf Energy; Execu
Slide 15: Financial Overview
\ Financial Overview
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS 1 Proven track record of scaling mining business with line of sight into 23+ EH/s Unique access to environmentally sustainable energy and one of the lowest 2 electricity costs among peers at $0.025 per kWh 3 Conservative initial capital requirements to scale to 800 MW(1) 4 Immed
Slide 17: Illustrative Mining Economics
ILLUSTRATIVE MINING ECONOMICS Annual Hashrate (EH/s) Annual BTC Mined Yearly Average 23.0 bitcoins 22.6 EH/s BTC Award 16,571 17,020 19.5 Transaction Fees 13,917 13,105 13.1 9,980 7.2 0.7 178 2021E 2022E 2023E 2024E 2025E 2026E 2021E 2022E 2023E 2024E 2025E 2026E Hashrate Assumptions Mining Assumpti
Slide 18: Financial Projections
FINANCIAL PROJECTIONS Total Revenue Gross Profit $mm $mm BTC Revenue $956 $931 $980 Illustrative(1) Data Center Revenue $807 $794 $741 $783 Illustrative(1) $700 $438 856 795 843 749 $380 403 $10 $9 34 58 100 136 137 2021E 2022E 2023E 2024E 2025E 2026E 2021E 2022E 2023E 2024E 2025E 2026E EBITDA Capex
Slide 19: Resiliency to BTC Prices
RESILIENCY TO BTC PRICES Illustrative Sensitivity to BTC and Power Prices Revenue By Year to BTC Price(1) CY 2022E BTC EBITDA(1) $mm (except BTC Revenue $mm (except BTC Price BTC price) BTC price) 9 2021E 2022E 2023E 2024E 2025E $276 $20,000 $30,000 $35,000 $40,000 $50,000 $20,000 $5 $292 $485 $524
Slide 20: Well Defined Capex Plan
WELL DEFINED CAPEX PLAN $mm, miners in (000s) Pro Forma Delivery Order Order Order (1) Order (2) Year Ending December 31 Transaction Date Capacity MW # Of Miners Infrastructure Cost Miner Cost Year Capex (3) EBITDA FCF (4) Cumulative FCF Phase I 11/1/2021 75 22 $46 $108 2021E $368 $8 $20(5) $20 Phas
Slide 21: Clear Line of Sight to Continued Buildout
CLEAR LINE OF SIGHT TO CONTINUED BUILDOUT Installed 142 200 375 550 700 800 Capacity MW MW MWFollow-on #1 MW MW MW +22K Phase I +29K Phase II +7K Phase III Additional +29K Phase IV +57K Phase V Phases +29K Phase VI +57K Phase VII 4/30/21 2/28/22 4/30/22 9/30/22 8/31/23 3/31/24 6/30/25 Miners 36K 54K
Slide 22: Summary P&L
SUMMARY P&L ($mm), BTC Flow and BTC Balance in BTC 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) (19
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 losses. • We depend on our senior management team, and the loss of their services would have a material ad
Slide 24: Mining powers Bitcoin. TeraWulf powers sustainable mining.
Mining powers Bitcoin. TeraWulf POWERS SUSTAINABLE MINING. Merger Announcement info@TeraWulf.com