TeraWulf Announces January 2024 Production and Operations Update: 7.1 EH/s and Counting
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Insights
The recent operational update from TeraWulf Inc. highlights significant advancements in their bitcoin mining capabilities, with a reported self-mining hashrate of 7.1 EH/s. The financial implications of this development are substantial, given that the company's power cost per bitcoin is $16,737 against an average bitcoin value of $42,810. This margin suggests a strong profitability potential, particularly as the company scales up its operations to an expected 7.9 EH/s in the near term and targets 10 EH/s by mid-2024.
Investors should note the strategic deployment of performance tuning and selective miner curtailment, which indicates a proactive approach to managing operational costs during periods of high energy prices. The company's focus on maintaining stock efficiency while testing firmware and third-party solutions for up to a 10% increase in output could further enhance profitability. However, investors must also consider the volatility of bitcoin prices and the potential impact on the company's revenue stream.
Lastly, the construction of Building 4 and the commitment to a high-performance computing (HPC) project signify long-term growth strategies. This expansion, however, comes with capital expenditure risks and the need for effective management of increased operational complexity.
TeraWulf Inc.'s utilization of over 91% zero-carbon energy for bitcoin mining is a crucial factor in the energy sector's ongoing transition towards sustainability. The company's average power cost of approximately $0.05/kWh is competitively low, particularly in the context of the cryptocurrency mining industry, where energy consumption is a significant operational cost.
Their strategy to leverage demand response and ancillary services revenue could serve as a model for other energy-intensive operations looking to mitigate energy costs and capitalize on grid incentives. Additionally, the deployment of energy-efficient S19j XPs and the company's selective approach to miner performance tuning during high energy pricing periods reflect an adaptive energy management strategy that could minimize the impact of fluctuating energy costs on the bottom line.
Investors and industry observers should monitor how TeraWulf's expansion and the potential large-scale HPC project might affect their energy consumption and whether their commitment to zero-carbon energy sources can be maintained at scale.
The operational update from TeraWulf Inc. indicates a strategic positioning within the cryptocurrency mining industry. As the company reaches a self-mining hashrate of 7.1 EH/s and projects growth to 10 EH/s, it is poised to benefit from economies of scale. However, the cryptocurrency market is known for its volatility and the price of bitcoin can significantly influence the company's financial performance.
Moreover, the average production rate of over 10 bitcoin per day places TeraWulf in a competitive spot in terms of output. The slight decrease in bitcoin production from December to January due to increased difficulty and lower transaction fees is a reminder of the inherent risks and uncertainties in the mining sector. The company's commitment to innovation, as evidenced by the exploration of firmware and third-party solutions, could improve efficiency and output, potentially providing a hedge against these risks.
It is also important to consider the broader implications of TeraWulf's expansion on the cryptocurrency mining landscape, including the potential impact on the global hashrate distribution and the competitive dynamics within the industry.
Achieved 7.1 EH/s of self-mining in January with Building 3 (45 MW) at Lake Mariner fully energized
Expected to reach 7.9 EH/s of owned hashrate in early February as additional S19j XPs are deployed
Building 4 (35 MW) construction at Lake Mariner well underway, providing path to 10 EH/s by mid-2024
EASTON, Md., Feb. 02, 2024 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), owners and operators of vertically integrated, domestic bitcoin mining facilities powered by more than
January 2024 Highlights
- Self-mined 313 bitcoin in January with an average production rate of over 10 bitcoin per day.
- Power cost averaged
$16,737 per bitcoin self-mined, or approximately$0.05 /kWh in January, which excludes the benefit of demand response or ancillary services revenue. - Building 3 at Lake Mariner was fully deployed at month end, utilizing roughly two thirds of the Company’s recently purchased 2.8 EH/s of S19j XPs. The balance of the S19j XP purchase is planned to be installed by early February to consume open infrastructure capacity as it becomes available in connection with the nearing expiration of the Company’s only hosting agreement.
- Strategically deployed performance tuning, including efficiency mode and selective miner curtailment, during the week of elevated energy pricing mid-January, in addition to overclocking to increase hash when energy pricing normalized.
| Key Metrics 1 | January 2024 | |
| Bitcoin Self-Mined 2 | 313 | |
| Value per Bitcoin Self-Mined 3 | ||
| Power Cost per Bitcoin Self-Mined 4 | ||
| Avg. Operating Hash Rate (EH/s) 5 | 5.4 | |
Management Commentary
“During January, the Company mined 313 bitcoin, a slight decrease from December’s bitcoin production, due to increased average difficulty and lower transaction fees month-over-month, as well as opportunistic miner performance tuning, which was done to maximize margins during days with seasonally elevated power prices due to colder than average temperatures in upstate New York. Despite the cold snap, our team worked tirelessly throughout the month to deploy the S19j XP deliveries in line with our February 1 target,” said Sean Farrell, SVP of Operations at TeraWulf.
“We continue to explore firmware and third-party solutions to further improve performance, and testing has shown up to a
Production and Operations Update
With the energization of Building 3 (45 MW) at the Lake Mariner facility in January, operational infrastructure capacity at the Lake Mariner facility increased to approximately 160 MW and TeraWulf’s total self-mining hashrate reached 7.1 EH/s as of month-end January. The Company expects to deploy an additional 5,000 S19j XPs at Lake Mariner in early February, which will increase TeraWulf’s self-mining hashrate by an additional
Construction of Building 4 (35 MW) at the Lake Mariner facility is well underway and remains on track to be completed by mid-2024, which will provide over 12,000 additional miner slots, which would further increase TeraWulf’s total operational capacity to approximately 10 EH/s.
As previously announced, the Company is pursuing a potential large-scale HPC project at the Lake Mariner site and has committed an initial 2 MW block of power, capable of deploying thousands of the latest generation GPUs.
About TeraWulf
TeraWulf owns and operates vertically integrated, environmentally clean bitcoin mining facilities in the United States. Led by an experienced group of energy entrepreneurs, the Company currently has two Bitcoin mining facilities: the wholly owned Lake Mariner facility in New York, and Nautilus Cryptomine facility in Pennsylvania, a joint venture with Cumulus Coin, LLC. TeraWulf generates domestically produced Bitcoin powered by
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, and/or regulation regarding safety, health, environmental and other matters, which could require significant expenditures; (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) adverse geopolitical or economic conditions, including a high inflationary environment; (8) 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); (9) 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; (10) employment workforce factors, including the loss of key employees; (11) litigation relating to TeraWulf, RM 101 f/k/a IKONICS Corporation and/or 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.
Company Contact:
Jason Assad
Director of Corporate Communications
assad@terawulf.com
(678) 570-6791
1 The Company’s share of the earnings or losses from operations at the Nautilus Cryptomine facility is reflected within “Equity in net income (loss) of investee, net of tax” in the consolidated statements of operations. Accordingly, operating results of the Nautilus Cryptomine facility are not reflected in revenue, cost of revenue or cost of operations lines in TeraWulf’s consolidated statements of operations. The Company uses these metrics as indictors of operational progress and effectiveness and believes they are useful to investors for the same purposes and to provide comparisons to peer companies. All figures except Bitcoin Self-Mined are estimates and remain subject to standard month-end adjustments.
2 Includes bitcoin earned from profit sharing associated with a hosting agreement at the Lake Mariner facility and TeraWulf’s net share of bitcoin mined at the Nautilus Cryptomine facility, based on hashrate share attributed to the Company.
3 Computed as the weighted-average opening price of bitcoin on each respective day the Bitcoin Self-Mined is earned.
4 Excludes 5 bitcoin earned from profit sharing associated with a hosting agreement.
5 While nameplate inventory as of January 31, 2024 for WULF’s two facilities is estimated at 7.2 EH/s, actual monthly hash rate performance depends on a variety of factors, including (but not limited to) performance tuning to increase efficiency and maximize margin, scheduled outages (scopes to improve reliability or performance), unscheduled outages, curtailment due to participation in various cash generating demand response programs, derate of ASICS due to adverse weather and ASIC maintenance and repair.
FAQ
What is the self-mining hashrate achieved by TeraWulf Inc. in January 2024?
What is the expected owned hashrate of TeraWulf Inc. in early February?
How many bitcoins did TeraWulf Inc. mine in January 2024?
What is the average production rate of bitcoins per day for TeraWulf Inc.?
What is the power cost per bitcoin self-mined by TeraWulf Inc. in January 2024?
What is the status of Building 4 construction at Lake Mariner?
What percentage of zero-carbon energy powers TeraWulf Inc.?
What project is TeraWulf Inc. pursuing at the Lake Mariner site?
