TeraWulf Announces March 2024 Production and Operations Update
- TeraWulf Inc. self-mined 379 bitcoins in March with an average production rate of 12.2 bitcoins per day.
- The power cost per bitcoin self-mined was $13,798 in March.
- Installed hash rate increased to 8 EH/s by the end of March.
- Building 4 (35 MW) at Lake Mariner is expected to be completed by mid-2024, potentially increasing operational capacity to 10 EH/s.
- The company is pursuing a high-performance computing project at the Lake Mariner site.
- None.
Insights
The update from TeraWulf Inc. highlights significant developments in their bitcoin mining operations, particularly the increase in self-mining capacity and the ongoing construction of their Lake Mariner facility. From an energy perspective, the fact that their operations are powered by more than 95% zero-carbon energy is notable in the context of the broader industry's concerns about the environmental impact of bitcoin mining. The operational efficiency gains from the implementation of third-party firmware and participation in demand response programs demonstrate a proactive approach to energy management, which could lead to reduced operational costs and improved profit margins.
Moreover, the average power cost of $0.035/kWh is competitive, especially when considering the volatility in energy prices. This cost efficiency could provide TeraWulf with a strategic advantage as it scales up operations. The expansion of the Lake Mariner facility, with a projected increase in operational capacity to 10 EH/s by mid-2024, suggests a forward-looking investment in infrastructure that could potentially meet the growing demand for bitcoin mining powered by renewable energy sources.
With TeraWulf Inc.'s March update, investors in the cryptocurrency space can gauge the operational momentum of the company. The self-mining of 379 bitcoin in March represents a significant output and when combined with the average value per bitcoin self-mined, it offers a clear picture of revenue generation potential. The market should also note the increase in the installed hash rate to 8 EH/s, which is a strong indicator of mining power and capability. This increased capacity could potentially translate into greater market share within the competitive bitcoin mining industry.
The deployment of 3,000 additional S19k Pro miners is expected to enhance efficiency and output, positioning TeraWulf favorably against competitors. However, the potential benefits of such an expansion must be weighed against the inherent volatility of bitcoin's value, as seen in the fluctuation of the value per bitcoin self-mined from February to March 2024. Investors should monitor the correlation between TeraWulf's operational enhancements and the fluctuating price of bitcoin to assess the impact on the company's profitability.
Analyzing TeraWulf Inc.'s financial health through the lens of their latest production and operations update, several key metrics stand out. The decrease in power cost per bitcoin self-mined, even if marginal, suggests a trend towards operational cost efficiency. This is further corroborated by the company's strategic investments in upgrading their mining equipment to more efficient models, which could lead to long-term cost savings.
Investors should consider the implications of TeraWulf's expansion plans and the ongoing construction of Building 4 at Lake Mariner. The capital expenditure required for such an expansion must be justified by the projected increase in mining capacity and the anticipated return on investment. The commitment to a potential high-performance computing project also indicates diversification of revenue streams, which could mitigate the risk associated with the volatility of the cryptocurrency market.
It is essential to analyze the company's balance sheet and cash flow statements in subsequent quarters to understand the financial impact of these operational strategies and to evaluate the sustainability of their growth trajectory in the context of the broader economic environment.
8 EH/s of installed and operational self-mining capacity
Building 4 (35 MW) at Lake Mariner nearing final construction, providing path to 10 EH/s by mid-2024
EASTON, Md., April 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
March 2024 Production and Operations Highlights
- Self-mined 379 bitcoin in March with an average production rate of 12.2 bitcoin per day.
- Power cost averaged
$13,798 per bitcoin self-mined, or approximately$0.03 5/kWh in March, which excludes the benefit of expected demand response or ancillary services proceeds. - Installed hash rate increased month-over-month to 8 EH/s exiting March, primarily due to the replacement of approximately 1,000 older generation miners with S19k Pro miners.
- In early April, an additional 3,000 S19k Pro miners are expected to be delivered and energized at the Lake Mariner facility and deployed to replace older generation miners and expand the miner fleet.
| Key Metrics 1 | March 2024 | February 2024 | ||
| Bitcoin Self-Mined Lake Mariner | 290 | 276 | ||
| Bitcoin Self-Mined Nautilus 2 | 89 | 88 | ||
| Value per Bitcoin Self-Mined 3 | ||||
| Power Cost per Bitcoin Self-Mined | ||||
| Avg. Operating Hash Rate (EH/s) 4 | 7.6 | 7.5 | ||
Management Commentary
“In addition to replacing older generation miners, during March, Lake Mariner implemented third-party firmware across a significant portion of our mining fleet, with initial results indicating a potential
Farrell further stated, “Additionally, Lake Mariner continues to actively engage in demand response programs. Our recent expansion of qualified capacity within the NYISO Operating Reserve program reflects our ongoing commitment to operational efficiency and resource management.”
Production and Operations Update
Operational infrastructure capacity consists of 160 MW at the Lake Mariner facility and 50 MW at the Nautilus Cryptomine, resulting in a combined self-mining hash rate of 8 EH/s as of the end of March. On average, the mining facilities operated at
Construction of Building 4 (35 MW) at the Lake Mariner facility remains on track to be completed by mid-2024, which is expected to increase TeraWulf’s total operational capacity to approximately 10 EH/s.
As previously announced, the Company is pursuing a potential large-scale, high-performance computing (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 graphics processing units (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 and/or its business; 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 TeraWulf’s net share of bitcoin mined at the Nautilus Cryptomine facility, based on hash rate 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 While nameplate inventory as of March 31, 2024 for TeraWulf’s two facilities is estimated at 8 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
How many bitcoins did TeraWulf self-mine in March 2024?
What was the average production rate of bitcoins per day in March 2024?
What was the power cost per bitcoin self-mined in March 2024?
What was the installed hash rate by the end of March 2024?
When is Building 4 at Lake Mariner expected to be completed?
What project is TeraWulf pursuing at the Lake Mariner site?
