TeraWulf Inc., a company specializing in sustainable bitcoin mining, reported significant developments in its operations and financial performance. The company operates the Lake Mariner Facility in New York, with a capacity to scale up to 500 MW, and potentially 750 MW with upgrades. TeraWulf's revenue is derived from bitcoin mining, utilizing a fleet of high-performance miners primarily sourced from Bitmain Technologies Limited. The company generates revenue by providing hash computation services to a mining pool operator and earns transaction fees for confirming blockchain transactions. TeraWulf liquidates mined bitcoin to acquire U.S. dollars for operational expenses and stores its bitcoin holdings in a cold storage wallet managed by NYDIG Trust Company LLC. In December 2023, TeraWulf launched a digital infrastructure and...Show More

TeraWulf Inc., a company specializing in sustainable bitcoin mining, reported significant developments in its operations and financial performance. The company operates the Lake Mariner Facility in New York, with a capacity to scale up to 500 MW, and potentially 750 MW with upgrades. TeraWulf's revenue is derived from bitcoin mining, utilizing a fleet of high-performance miners primarily sourced from Bitmain Technologies Limited. The company generates revenue by providing hash computation services to a mining pool operator and earns transaction fees for confirming blockchain transactions. TeraWulf liquidates mined bitcoin to acquire U.S. dollars for operational expenses and stores its bitcoin holdings in a cold storage wallet managed by NYDIG Trust Company LLC. In December 2023, TeraWulf launched a digital infrastructure and third-party colocation initiative to support workloads in machine learning, artificial intelligence, and other compute-intensive fields. Although this investment is in its early stages and not yet generating revenue, it aligns with TeraWulf's long-term growth and diversification strategy. TeraWulf sold its 25% equity interest in the Nautilus Cryptomine LLC joint venture in October 2024, reinvesting the proceeds in future growth. The company plans to develop infrastructure for growth and profitability while pursuing high-value computing opportunities. TeraWulf is constructing a 20 MW colocation building with advanced cooling systems and redundancy features, expected to be operational by the first quarter of 2025. A second colocation building with a planned capacity of 50 MW is anticipated to be completed by the end of the second quarter of 2025. These initiatives are expected to add approximately 178 MW of additional HPC data center capacity throughout 2025. TeraWulf's financial performance includes revenue of $27.1 million for Q3 2024, an increase from $19.0 million in Q3 2023. The increase is attributed to a higher average price of bitcoin and increased mining capacity. However, the total bitcoin mined decreased due to the halving in April 2024 and an increase in network hashrate. The cost of mining each bitcoin increased significantly from $9,352 in Q3 2023 to $30,499 in Q3 2024, reflecting higher energy costs and network difficulty. TeraWulf's operating expenses also increased due to higher property insurance and miner repair costs. The company's strategic transactions, including the sale of its equity interest in Nautilus and the completion of a private offering of 2.75% Convertible Senior Notes due 2030, have provided capital to fund the strategic development of infrastructure necessary for growth in bitcoin mining and data center hosting.