TeraWulf Reports Second Quarter 2024 Financial Results
TeraWulf Inc. (WULF) reported strong Q2 2024 financial results, with revenue increasing 130.2% year-over-year to $35.6 million. The company's gross profit (exclusive of depreciation) rose 109.4% to $21.7 million, while Adjusted EBITDA grew 156.4% to $19.5 million. TeraWulf's operational self-mining capacity increased 80% year-over-year to 8.8 EH/s. The company self-mined 699 bitcoin across its facilities, valued at $46.1 million. Notably, TeraWulf paid down approximately $30.2 million of debt in Q2, followed by a significant repayment of $75.8 million in July, fully eliminating its debt ahead of maturity. The company is also advancing its AI and high-performance computing initiatives at the Lake Mariner Facility, positioning itself for growth in the data center market.
TeraWulf Inc. (WULF) ha riportato risultati finanziari robusti per il secondo trimestre del 2024, con un incremento del fatturato del 130,2% su base annua a $35,6 milioni. L'utile lordo dell'azienda (esclusa l'ammortizzazione) è aumentato del 109,4% a $21,7 milioni, mentre l'EBITDA rettificato è cresciuto del 156,4% a $19,5 milioni. La capacità operativa di autoconversione al mining di TeraWulf è aumentata dell'80% anno su anno, raggiungendo 8,8 EH/s. L'azienda ha estratto 699 bitcoin nelle sue strutture, per un valore di $46,1 milioni. È degno di nota che TeraWulf ha ridotto circa $30,2 milioni di debito nel secondo trimestre, seguito da un rimborso significativo di $75,8 milioni a luglio, eliminando completamente il debito anticipatamente rispetto alla scadenza. L'azienda sta anche portando avanti le sue iniziative di intelligenza artificiale e di calcolo ad alte prestazioni presso la Struttura di Lake Mariner, posizionandosi per la crescita nel mercato dei data center.
TeraWulf Inc. (WULF) reportó resultados financieros sólidos para el segundo trimestre de 2024, con un aumento del 130,2% en ingresos interanuales a $35,6 millones. La ganancia bruta de la empresa (sin incluir la depreciación) subió un 109,4% a $21,7 millones, mientras que el EBITDA ajustado creció un 156,4% a $19,5 millones. La capacidad operativa de auto-minería de TeraWulf aumentó un 80% interanual a 8,8 EH/s. La empresa extrajo 699 bitcoins en sus instalaciones, valorados en $46,1 millones. Notablemente, TeraWulf pagó aproximadamente $30,2 millones de deuda en el segundo trimestre, seguido de un reembolso significativo de $75,8 millones en julio, eliminando por completo su deuda antes del vencimiento. La empresa también está avanzando en sus iniciativas de inteligencia artificial y computación de alto rendimiento en la instalación de Lake Mariner, posicionándose para un crecimiento en el mercado de centros de datos.
TeraWulf Inc. (WULF)는 2024년 2분기 강력한 재무 결과를 보고했으며, 매출이 전년대비 130.2% 증가하여 3560만 달러에 달했습니다. 회사의 총 이익(감가상각 제외)는 109.4% 증가하여 2170만 달러에 이르렀으며, 조정 EBITDA는 156.4% 성장하여 1950만 달러에 이르렀습니다. TeraWulf의 자체 채굴 용량은 전년 대비 80% 증가하여 8.8 EH/s에 도달했습니다. 회사는 시설에서 699 비트코인을 자체 채굴했습니다, 이는 4610만 달러의 가치가 있습니다. 주목할만한 점은 TeraWulf가 2분기에 약 3020만 달러의 부채를 갚았습니다, 이후 7월에 7580만 달러를 상환하여 만기 이전에 모든 부채를 완전히 없앴습니다. 회사는 Lake Mariner 시설에서 인공지능 및 고성능 컴퓨팅 이니셔티브를 진행 중이며, 데이터 센터 시장에서 성장을 위해 자리매김하고 있습니다.
TeraWulf Inc. (WULF) a annoncé de solides résultats financiers pour le deuxième trimestre de 2024, avec une augmentation des revenus de 130,2 % par rapport à l'année précédente, atteignant 35,6 millions de dollars. Le bénéfice brut de l'entreprise (hors amortissement) a augmenté de 109,4 % pour atteindre 21,7 millions de dollars, tandis que le EBITDA ajusté a crû de 156,4 % pour atteindre 19,5 millions de dollars. La capacité opérationnelle d'auto-minage de TeraWulf a augmenté de 80 % d'une année sur l'autre, atteignant 8,8 EH/s. L'entreprise a auto-miné 699 bitcoins dans ses installations, d'une valeur de 46,1 millions de dollars. Notamment, TeraWulf a remboursé environ 30,2 millions de dollars de dettes au cours du deuxième trimestre, suivi d'un remboursement significatif de 75,8 millions de dollars en juillet, éliminant complètement sa dette avant l'échéance. L'entreprise avance également ses initiatives en matière d'IA et de calcul haute performance au sein de l'installation de Lake Mariner, se positionnant pour une croissance sur le marché des centres de données.
TeraWulf Inc. (WULF) hat starke Finanzkennzahlen für das zweite Quartal 2024 veröffentlicht, mit einem Umsatzanstieg von 130,2% im Vergleich zum Vorjahr auf 35,6 Millionen US-Dollar. Der Bruttogewinn des Unternehmens (ohne Abschreibungen) stieg um 109,4% auf 21,7 Millionen US-Dollar, während das bereinigte EBITDA um 156,4% auf 19,5 Millionen US-Dollar zunahm. Die operative Selbstmining-Kapazität von TeraWulf nahm im Jahresvergleich um 80% auf 8,8 EH/s zu. Das Unternehmen hat 699 Bitcoin selbst abgebaut, die einen Wert von 46,1 Millionen US-Dollar haben. Bemerkenswert ist, dass TeraWulf im zweiten Quartal etwa 30,2 Millionen US-Dollar Schulden abgebaut hat, gefolgt von einer erheblichen Rückzahlung von 75,8 Millionen US-Dollar im Juli, wodurch die gesamten Schulden vor Fälligkeit vollständig beseitigt wurden. Das Unternehmen treibt außerdem seine AI- und Hochleistungsrecheninitiativen im Lake Mariner Facility voran und positioniert sich für ein Wachstum im Rechenzentrumsmarkt.
- Revenue increased 130.2% year-over-year to $35.6 million in Q2 2024
- Gross profit (exclusive of depreciation) rose 109.4% to $21.7 million
- Adjusted EBITDA grew 156.4% to $19.5 million
- Operational self-mining capacity increased 80% year-over-year to 8.8 EH/s
- Fully eliminated company debt ahead of maturity
- Advancing AI and high-performance computing initiatives at Lake Mariner Facility
- Bitcoin self-mined decreased 21.4% year-over-year to 699 bitcoin in Q2 2024
- Power cost per bitcoin self-mined increased 243.2% to $22,954 in Q2 2024
- Gross profit margin decreased from 66.9% in Q2 2023 to 60.9% in Q2 2024
TeraWulf's Q2 2024 results demonstrate impressive growth despite challenging market conditions. The
The company's debt reduction strategy is particularly noteworthy. By paying down
However, investors should note the increased power costs per Bitcoin mined, rising from
TeraWulf's strategic pivot towards AI and high-performance computing (HPC) is a game-changer. The company's investment in a 128-GPU NVIDIA cluster and infrastructure upgrades at Lake Mariner demonstrates a forward-thinking approach. This diversification could provide a significant competitive edge as demand for AI compute power continues to surge.
The company's scalable infrastructure of 600 megawatts is a key asset, allowing for flexible allocation between Bitcoin mining and HPC/AI applications. The planned expansion of Building 5 at Lake Mariner, adding 50 MW by Q1 2025, further enhances this flexibility.
TeraWulf's focus on zero-carbon energy (
Q2 2024 Revenue of
Revenue growth of
Paid down approximately
Operational self-mining capacity as of June 30, 2024 increased
Continued advancements in AI and high-performance computing initiatives at Lake Mariner.
EASTON, Md., Aug. 12, 2024 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates vertically integrated, domestic bitcoin mining facilities powered by approximately
Second Quarter 2024 GAAP Operational and Financial Highlights
- Self-mined 539 bitcoin at the Lake Mariner Facility.
- Revenue increased to
$35.6 million in Q2 2024 compared to$15.5 million in Q2 2023. - Gross profit (exclusive of depreciation) increased to
$21.7 million in Q2 2024 compared to$10.3 million in Q2 2023. - Total self-mining hashrate capacity at the Lake Mariner Facility of 8.8 EH/s as of June 30, 2024, representing an increase of
79.6% relative to the same prior year period.
Key GAAP Metrics ($ in thousands) | Three Months Ended Q2 2024 | Three Months Ended Q2 2023 | % Change | |||||
Revenue | $ | 35,574 | $ | 15,456 | 130.2 | % | ||
Gross profit (exclusive of depreciation) | $ | 21,656 | $ | 10,343 | 109.4 | % | ||
Gross profit margin | 60.9 | % | 66.9 | % | (9.0 | )% |
Second Quarter 2024 Non-GAAP Operational and Financial Highlights
- Self-mined 699 bitcoin across the Lake Mariner and Nautilus Cryptomine facilities, which represented a
21.4% decrease relative to in Q2 2023. - Total value of bitcoin self-mined1 of
$46.1 million in Q2 2024 compared to$24.9 million in Q2 2023. - Power cost per bitcoin self-mined increased year-over-year, to
$22,954 per bitcoin in Q2 2024 from$6,688 per bitcoin in Q2 2023, due to an approximate doubling in network difficulty and the bitcoin reward halving in April 2024. - Adjusted EBITDA of
$19.5 million in Q2 2024, an increase of156.4% from$7.6 million in Q2 2023.
Key Non-GAAP Metrics2 | Three Months Ended Q2 2024 | Three Months Ended Q2 2023 | % Change | |||
Bitcoin Self-Mined3 | 699 | 889 | (21.4 | )% | ||
Value per Bitcoin Self-Mined4 | $ | 65,984 | $ | 27,976 | 135.9 | % |
Power Cost per Bitcoin Self-Mined5 | $ | 22,954 | $ | 6,688 | 243.2 | % |
Avg. Operating Hash Rate (EH/s)6 | 7.4 | 3.6 | 105.6 | % |
Management Commentary
“TeraWulf's second-quarter results reflect our unwavering commitment to operational excellence and strategic growth. By completing the construction of Building 4 at Lake Mariner, advancing our AI and high-performance computing initiatives, and streamlining our capital structure, we have solidified our position as a leader in the industry. Our focus on low-cost, predominantly zero-carbon energy and efficient management has enabled us to achieve industry-leading profitability while positioning us to capitalize on emerging opportunities in the rapidly growing data center market,” said Paul Prager, CEO of TeraWulf.
“Our extensive 600 megawatts of owned and scalable infrastructure is a key differentiator, allowing us to leverage our success in bitcoin mining as the foundation for expanding into alternative compute hosting. This strategic move aligns perfectly with the increasing demand for high-power data center capacity, positioning us for long-term growth and profitability,” continued Prager.
Patrick Fleury, TeraWulf’s CFO added, “In the second quarter of 2024, TeraWulf delivered solid financial performance, even in a challenging fundamental business environment following the Bitcoin reward halving in April, mining a total of 699 bitcoin across our facilities. During the quarter, we maintained our focus on cost management, achieving quarter-over-quarter reductions in power costs at Lake Mariner and SG&A expenses. In addition, our robust balance sheet, highlighted by a strong cash position and the elimination of debt, positions us well for future growth. We remain committed to maximizing shareholder value as we diversify into HPC and AI expansion in the latter half of the year."
Production and Operations Update
The recent completion of Building 4 at the Company's wholly owned Lake Mariner Facility in New York has expanded TeraWulf’s bitcoin mining infrastructure capacity to 245 MW and over 10.0 EH/s across its two sites. The Company has also begun construction on Building 5 at the Lake Mariner Facility, which is expected to contribute an additional 50 MW of infrastructure capacity by Q1 2025. This capacity can be utilized for bitcoin mining or AI/HPC compute applications.
In Pennsylvania, the Company currently has 50 MW of operational mining capacity at the Nautilus Cryptomine Facility, a joint venture with Cumulus Coin, LLC. TeraWulf’s additional 50 MW of expansion capacity at the Nautilus Cryptomine Facility is planned to come online in 2025, potentially increasing TeraWulf’s bitcoin mining operating capacity by up to 2.5 EH/s at the site.
As previously announced, the Company is advancing activities to support a large-scale, high-performance computing (HPC) and AI project at the Lake Mariner Facility. The Company has committed an initial 2 MW block of power to the project, capable of supporting thousands of the latest generation graphics processing units (GPUs). During the second quarter, the Company purchased a 128-GPU cluster from NVIDIA, financed by a leading OEM. To support this project, the Company has upgraded the internet interconnection at the Lake Mariner Facility to meet the bandwidth requirements of AI, designed a closed-loop liquid cooling system, and ensured power supply redundancy for
Second Quarter 2024 GAAP Financial Results
Revenue in the second quarter of 2024 increased
Gross profit (exclusive of depreciation) in the second quarter of 2024 increased
During the second quarter of 2024, the Company repaid
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 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 primarily by nuclear and hydro energy with a goal of utilizing predominantly
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
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2024 AND DECEMBER 31, 2023
(In thousands, except number of shares and par value)
June 30, 2024 | December 31, 2023 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 104,109 | $ | 54,439 | |||
Digital currency | 946 | 1,801 | |||||
Prepaid expenses | 2,850 | 4,540 | |||||
Other receivables | 2,554 | 1,001 | |||||
Other current assets | 505 | 806 | |||||
Total current assets | 110,964 | 62,587 | |||||
Equity in net assets of investee | 85,568 | 98,613 | |||||
Property, plant and equipment, net | 272,049 | 205,284 | |||||
Right-of-use asset | 10,440 | 10,943 | |||||
Other assets | 547 | 679 | |||||
TOTAL ASSETS | $ | 479,568 | $ | 378,106 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 8,398 | $ | 15,169 | |||
Accrued construction liabilities | 3,033 | 1,526 | |||||
Other accrued liabilities | 7,751 | 9,179 | |||||
Share based liabilities due to related party | — | 2,500 | |||||
Other amounts due to related parties | 632 | 972 | |||||
Current portion of operating lease liability | 51 | 48 | |||||
Insurance premium financing payable | 249 | 1,803 | |||||
Current portion of long-term debt | 72,302 | 123,465 | |||||
Total current liabilities | 92,416 | 154,662 | |||||
Operating lease liability, net of current portion | 873 | 899 | |||||
Long-term debt | 38 | 56 | |||||
TOTAL LIABILITIES | 93,327 | 155,617 | |||||
Commitments and Contingencies (See Note 12) | |||||||
STOCKHOLDERS' EQUITY: | |||||||
Preferred stock, | 9,273 | 9,273 | |||||
Common stock, | 374 | 277 | |||||
Additional paid-in capital | 656,941 | 472,834 | |||||
Accumulated deficit | (280,347 | ) | (259,895 | ) | |||
Total stockholders’ equity | 386,241 | 222,489 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 479,568 | $ | 378,106 |
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands, except number of shares and loss per common share; unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ | 35,574 | $ | 15,456 | $ | 78,007 | $ | 26,989 | |||||||
Cost of revenue (exclusive of depreciation shown below) | 13,918 | 5,113 | 28,326 | 10,115 | |||||||||||
Gross profit | 21,656 | 10,343 | 49,681 | 16,874 | |||||||||||
Cost of operations: | |||||||||||||||
Operating expenses | 797 | 468 | 1,582 | 776 | |||||||||||
Operating expenses – related party | 875 | 639 | 1,763 | 1,236 | |||||||||||
Selling, general and administrative expenses | 9,113 | 5,878 | 21,402 | 12,370 | |||||||||||
Selling, general and administrative expenses – related party | 2,803 | 2,676 | 5,423 | 5,574 | |||||||||||
Depreciation | 14,133 | 6,428 | 29,221 | 11,861 | |||||||||||
Loss (gain) on fair value of digital currency, net | 700 | — | (629 | ) | — | ||||||||||
Realized gain on sale of digital currency | — | (583 | ) | — | (1,186 | ) | |||||||||
Impairment of digital currency | — | 682 | — | 1,309 | |||||||||||
Total cost of operations | 28,421 | 16,188 | 58,762 | 31,940 | |||||||||||
Operating loss | (6,765 | ) | (5,845 | ) | (9,081 | ) | (15,066 | ) | |||||||
Interest expense | (5,325 | ) | (8,450 | ) | (16,370 | ) | (15,284 | ) | |||||||
Loss on extinguishment of debt | — | — | (2,027 | ) | — | ||||||||||
Other income | 447 | 54 | 947 | 54 | |||||||||||
Loss before income tax and equity in net income (loss) of investee | (11,643 | ) | (14,241 | ) | (26,531 | ) | (30,296 | ) | |||||||
Income tax benefit | — | — | — | — | |||||||||||
Equity in net income (loss) of investee, net of tax | 767 | (3,296 | ) | 6,042 | (13,463 | ) | |||||||||
Loss from continuing operations | (10,876 | ) | (17,537 | ) | (20,489 | ) | (43,759 | ) | |||||||
Loss from discontinued operations, net of tax | — | (3 | ) | — | (38 | ) | |||||||||
Net loss | (10,876 | ) | (17,540 | ) | (20,489 | ) | (43,797 | ) | |||||||
Preferred stock dividends | (292 | ) | (265 | ) | (578 | ) | (524 | ) | |||||||
Net loss attributable to common stockholders | $ | (11,168 | ) | $ | (17,805 | ) | $ | (21,067 | ) | $ | (44,321 | ) | |||
Loss per common share: | |||||||||||||||
Continuing operations | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.07 | ) | $ | (0.24 | ) | |||
Discontinued operations | - | — | - | — | |||||||||||
Basic and diluted | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.07 | ) | $ | (0.24 | ) | |||
Weighted average common shares outstanding: | |||||||||||||||
Basic and diluted | 340,662,826 | 210,421,237 | 315,714,178 | 187,843,663 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands; unaudited)
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (20,489 | ) | $ | (43,797 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Amortization of debt issuance costs, commitment fees and accretion of debt discount | 10,691 | 8,307 | |||||
Related party expense to be settled with respect to common stock | — | 417 | |||||
Common stock issued for interest expense | — | 26 | |||||
Stock-based compensation expense | 11,773 | 2,610 | |||||
Depreciation | 29,221 | 11,861 | |||||
Amortization of right-of-use asset | 503 | 501 | |||||
Increase in digital currency from mining and hosting services | (77,477 | ) | (24,206 | ) | |||
Loss (gain) on fair value of digital currency, net | (629 | ) | — | ||||
Realized gain on sale of digital currency | — | (1,186 | ) | ||||
Impairment of digital currency | — | 1,309 | |||||
Proceeds from sale of digital currency | 97,559 | 28,501 | |||||
Digital currency issued for services | 210 | — | |||||
Loss on extinguishment of debt | 2,027 | — | |||||
Equity in net (income) loss of investee, net of tax | (6,042 | ) | 13,463 | ||||
Loss from discontinued operations, net of tax | — | 38 | |||||
Changes in operating assets and liabilities: | |||||||
Decrease in prepaid expenses | 1,690 | 1,623 | |||||
Increase in other receivables | (1,553 | ) | — | ||||
Decrease (increase) in other current assets | 301 | (1,347 | ) | ||||
Decrease in other assets | 22 | 28 | |||||
Decrease in accounts payable | (6,267 | ) | (3,812 | ) | |||
Decrease in other accrued liabilities | (1,946 | ) | (2,330 | ) | |||
Decrease in other amounts due to related parties | (344 | ) | (1,290 | ) | |||
Decrease in operating lease liability | (23 | ) | (20 | ) | |||
Net cash provided by (used in) operating activities from continuing operations | 39,227 | (9,304 | ) | ||||
Net cash provided by operating activities from discontinued operations | — | 294 | |||||
Net cash provided by (used in) operating activities | 39,227 | (9,010 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Investments in joint venture, including direct payments made on behalf of joint venture | — | (2,845 | ) | ||||
Purchase of and deposits on plant and equipment | (93,579 | ) | (15,990 | ) | |||
Net cash used in investing activities | (93,579 | ) | (18,835 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Principal payments on long-term debt | (63,568 | ) | — | ||||
Payments of prepayment fees associated with early extinguishment of long-term debt | (314 | ) | — | ||||
Proceeds from insurance premium and property, plant and equipment financing | — | 790 | |||||
Principal payments on insurance premium and property, plant and equipment financing | (1,570 | ) | (2,450 | ) | |||
Proceeds from issuance of common stock, net of issuance costs paid of | 173,237 | 36,123 | |||||
Proceeds from warrant issuances | 1,901 | 2,500 | |||||
Payments of tax withholding related to net share settlements of stock-based compensation awards | (5,664 | ) | (852 | ) | |||
Proceeds from issuance of convertible promissory note | — | 1,250 | |||||
Payment of contingent value rights liability related to proceeds from sale of net assets held for sale | — | (9,598 | ) | ||||
Net cash provided by financing activities | 104,022 | 27,763 | |||||
Net change in cash and cash equivalents | 49,670 | (82 | ) | ||||
Cash and cash equivalents at beginning of period | 54,439 | 8,323 | |||||
Cash and cash equivalents at end of period | $ | 104,109 | $ | 8,241 | |||
Cash paid during the period for: | |||||||
Interest | $ | 6,214 | $ | 11,252 | |||
Income taxes | $ | — | $ | — |
Non-GAAP Measure
To provide investors with additional information in connection with our results as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we disclose Adjusted EBITDA as a non-GAAP measure. This measure is not a financial measure calculated in accordance with GAAP, and it should not be considered as a substitute for net income, operating income, or any other measure calculated in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies.
We define Adjusted EBITDA as income (loss) from continuing operations adjusted for (i) impacts of interest, taxes, depreciation and amortization; (ii) preferred stock dividends, stock-based compensation expense and related party expense to be settled with respect to common stock, all of which are non-cash items that the Company believes are not reflective of its general business performance, and for which the accounting requires management judgment, and the resulting expenses could vary significantly in comparison to other companies; (iii) equity in net income (loss) of investee, net of tax, related to Nautilus; (iv) other income which is related to interest income or income for which management believes is not reflective of the Company’s ongoing operating activities; (v) loss on extinguishment of debt, which is not reflective of the Company’s general business performance; and (vi) loss from discontinued operations, net of tax, which is not be applicable to the Company’s future business activities. The Company’s non-GAAP Adjusted EBITDA also includes the impact of distributions from investee received in bitcoin related to a return on the Nautilus investment, which management believes, in conjunction with excluding the impact of equity in net income (loss) of investee, net of tax, is reflective of assets available for the Company’s use in its ongoing operations as a result of its investment in Nautilus.
Management believes that providing this non-GAAP financial measure allows for meaningful comparisons between the Company's core business operating results and those of other companies, and provides the Company with an important tool for financial and operational decision making and for evaluating its own core business operating results over different periods of time. In addition to management's internal use of non-GAAP Adjusted EBITDA, management believes that Adjusted EBITDA is also useful to investors and analysts in comparing the Company’s performance across reporting periods on a consistent basis. Management believes the foregoing to be the case even though some of the excluded items involve cash outlays and some of them recur on a regular basis (although management does not believe any of such items are normal operating expenses necessary to generate the Company’s bitcoin related revenues). For example, the Company expects that share-based compensation expense, which is excluded from Adjusted EBITDA, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers, directors and consultants. Additionally, management does not consider any of the excluded items to be expenses necessary to generate the Company’s bitcoin related revenue.
The Company's Adjusted EBITDA measure may not be directly comparable to similar measures provided by other companies in the Company’s industry, as other companies in the Company’s industry may calculate non-GAAP financial results differently. The Company's Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to operating loss or any other measure of performance derived in accordance with GAAP. Although management utilizes internally and presents Adjusted EBITDA, the Company only utilizes that measure supplementally and does not consider it to be a substitute for, or superior to, the information provided by GAAP financial results. Accordingly, Adjusted EBITDA is not meant to be considered in isolation of, and should be read in conjunction with, the information contained in the Company’s consolidated financial statements, which have been prepared in accordance with GAAP.
The following table is a reconciliation of the Company’s non-GAAP Adjusted EBITDA to its most directly comparable GAAP measure (i.e., net loss attributable to common stockholders) for the periods indicated (in thousands):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net loss attributable to common stockholders | $ | (11,168 | ) | $ | (17,805 | ) | $ | (21,067 | ) | $ | (44,321 | ) | |||
Adjustments to reconcile net loss attributable to common stockholders to non-GAAP Adjusted EBITDA: | |||||||||||||||
Preferred stock dividends | 292 | 265 | 578 | 524 | |||||||||||
Loss from discontinued operations, net of tax | — | 3 | — | 38 | |||||||||||
Equity in net (income) loss of investee, net of tax | (767 | ) | 3,296 | (6,042 | ) | 13,463 | |||||||||
Distributions from investee, related to Nautilus | 7,065 | 4,943 | 19,087 | 4,943 | |||||||||||
Income tax benefit | — | — | — | — | |||||||||||
Other income | (447 | ) | (54 | ) | (947 | ) | (54 | ) | |||||||
Loss on extinguishment of debt | — | — | 2,027 | — | |||||||||||
Interest expense | 5,325 | 8,450 | 16,370 | 15,284 | |||||||||||
Depreciation | 14,133 | 6,428 | 29,221 | 11,861 | |||||||||||
Amortization of right-of-use asset | 251 | 251 | 503 | 501 | |||||||||||
Stock-based compensation expense | 4,842 | 1,734 | 11,773 | 2,610 | |||||||||||
Related party expense to be settled with respect to common stock | — | 104 | — | 417 | |||||||||||
Non-GAAP Adjusted EBITDA | $ | 19,526 | $ | 7,615 | $ | 51,503 | $ | 5,266 |
1 Excludes BTC earned from profit sharing associated with a hosting agreement that expired in February 2024 at the Lake Mariner Facility and includes TeraWulf's net share of BTC produced at the Nautilus Cryptomine Facility.
2 The Company’s share of the earnings or losses of operating results 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 indicators 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.
3 Excludes BTC earned from profit sharing associated with a hosting agreement that expired in February 2024 at the Lake Mariner Facility and TeraWulf’s net share of BTC produced at the Nautilus Cryptomine Facility.
4 Computed as the weighted-average opening price of BTC on each respective day the Self-Mined Bitcoin is earned.
5 The Q2 2024 and Q2 2023 calculations excludes 0 and 17 bitcoin, respectively, earned via hosting profit share.
6 While nameplate inventory for TeraWulf’s two facilities is 8.8 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.
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