TeraWulf Announces Closing of $28 Million Underwritten Equity Offering and Over-Allotment Option

Rhea-AI Summary

TeraWulf Inc. (NASDAQ: WULF) has successfully completed a public offering of 40,764,706 shares of its common stock at a price of $0.68 per share, totaling $27,720,000 in gross proceeds. This offering was previously announced and includes a partial exercise of the underwriter's option for an additional 4,000,000 shares. The company plans to utilize the net proceeds for general corporate purposes including working capital and capital expenditures. TeraWulf operates bitcoin mining facilities powered by more than 91% zero-carbon energy, focusing on sustainability and ESG principles.

Positive

• Raised $27,720,000 through public offering.
• Utilizing over 91% zero-carbon energy for bitcoin mining.

Negative

• None.

EASTON, Md.--(BUSINESS WIRE)-- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates vertically integrated, domestic bitcoin mining facilities powered by more than 91% zero-carbon energy, today announced that it has completed its previously announced underwritten public offering (the “Offering”) of 40,764,706 shares of its common stock, including 4,000,000 shares sold pursuant to the partial exercise of the underwriter’s option to purchase additional shares.

The shares were issued at a public offering price of $0.68 per share for total gross proceeds to the Company of $27,720,000, before deducting underwriter discounts and commissions and offering expenses. As previously disclosed, TeraWulf intends to use the net proceeds from the Offering for general corporate purposes, which may include working capital and/or capital expenditures.

The Offering was made by the Company pursuant to its shelf registration statement on Form S-3 (File No. 333-262226) previously filed with the Securities and Exchange Commission (the "SEC") and declared effective by the SEC on February 4, 2022. The final terms of the Offering were disclosed in a final prospectus supplement filed with the SEC and is available on the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus supplement and accompanying prospectus relating to the Offering may be obtained by sending a request to: JonesTrading, Attention: Equity Capital Markets, 211 E. 43^rd Street, New York, New York 10017; email: ecm@jonestrading.com.

About TeraWulf

TeraWulf (Nasdaq: WULF) owns and operates vertically integrated, environmentally clean Bitcoin mining facilities in the United States. Led by an experienced group of energy entrepreneurs, the Company is currently operating and/or completing construction of two mining facilities: Lake Mariner in New York, and Nautilus Cryptomine in Pennsylvania. TeraWulf generates domestically produced Bitcoin powered by nuclear, hydro, and solar energy with a goal of utilizing 100% zero-carbon energy. With a core focus on ESG that ties directly to its business success, TeraWulf expects to offer attractive mining economics at an industrial scale.

Forward-Looking Statements

This press release 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 anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions in the cryptocurrency mining industry, including fluctuation in the market pricing of bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including as to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among the various providers of cryptocurrency mining services; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates, including regulation regarding power generation, cryptocurrency usage and/or cryptocurrency mining; (4) the ability to implement certain business objectives and to timely and cost-effectively execute integrated projects; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to growth strategies or operations; (6) loss of public confidence in bitcoin or other cryptocurrencies and the potential for cryptocurrency market manipulation; (7) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (8) the availability, delivery schedule and cost of equipment necessary to maintain and grow the business and operations of TeraWulf, including mining equipment and infrastructure equipment meeting the technical or other specifications required to achieve its growth strategy; (9) employment workforce factors, including the loss of key employees; (10) litigation relating to TeraWulf, RM 101 f/k/a IKONICS Corporation and/or the business combination; (11) the ability to recognize the anticipated objectives and benefits of the business combination; and (12) other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230301005976/en/

Sandy Harrison

harrison@terawulf.com

(410) 770-9500

Source: TeraWulf Inc.

FAQ

What is the recent public offering completed by TeraWulf (WULF)?

TeraWulf completed an underwritten public offering of 40,764,706 shares at $0.68 per share, raising $27,720,000.

How does TeraWulf plan to use the proceeds from the public offering?

TeraWulf intends to use the net proceeds for general corporate purposes, including working capital and capital expenditures.

What percentage of TeraWulf's energy is zero-carbon?

TeraWulf powers its bitcoin mining facilities with more than 91% zero-carbon energy.

When was TeraWulf's public offering announced?

The public offering was announced prior to its completion and included a partial exercise of the underwriter's option.