TeraWulf Reports Third Quarter 2024 Financial Results
TeraWulf announced its Q3 2024 financial results, reporting revenue of $27.1 million, a 42.8% increase year-over-year. The company achieved a non-GAAP adjusted EBITDA of $6.0 million, down 33.6% from Q3 2023. TeraWulf's operational self-mining capacity grew 100% to 10.0 EH/s. Key strategic activities included selling its Nautilus JV interest, securing a new ground lease at Lake Mariner, a $500 million convertible note offering, and a $200 million share buyback.
TeraWulf self-mined 555 bitcoin, a 43.4% decrease from Q3 2023, with the value per bitcoin self-mined increasing 117.3% to $61,075. Power cost per bitcoin self-mined rose to $30,448 due to increased network difficulty and bitcoin halving. The company completed a 2.5 MW HPC hosting project and is expanding its HPC infrastructure.
CEO Paul Prager emphasized the company's strong positioning for growth, while CFO Patrick Fleury highlighted the $500 million financing to support growth plans through mid-2025.
TeraWulf ha annunciato i risultati finanziari del terzo trimestre 2024, riportando un fatturato di 27,1 milioni di dollari, con un aumento del 42,8% rispetto all'anno precedente. L'azienda ha realizzato un EBITDA rettificato non-GAAP di 6,0 milioni di dollari, in calo del 33,6% rispetto al terzo trimestre 2023. La capacità di auto-mining operativa di TeraWulf è aumentata del 100% raggiungendo i 10,0 EH/s. Le principali attività strategiche hanno incluso la vendita della partecipazione nella joint venture Nautilus, la garanzia di un nuovo contratto di locazione al Lago Mariner, un'offerta di obbligazioni convertibili da 500 milioni di dollari e un riacquisto di azioni da 200 milioni di dollari.
TeraWulf ha auto-minato 555 bitcoin, con una diminuzione del 43,4% rispetto al terzo trimestre 2023, mentre il valore per bitcoin auto-minato è aumentato del 117,3% raggiungendo i 61.075 dollari. Il costo dell'energia per bitcoin auto-minato è salito a 30.448 dollari a causa dell'aumento della difficoltà di rete e dell'halving del bitcoin. L'azienda ha completato un progetto di hosting HPC da 2,5 MW ed è in fase di espansione della sua infrastruttura HPC.
Il CEO Paul Prager ha sottolineato la forte posizione dell'azienda per la crescita, mentre il CFO Patrick Fleury ha evidenziato il finanziamento di 500 milioni di dollari per sostenere i piani di crescita fino a metà del 2025.
TeraWulf anunció sus resultados financieros del tercer trimestre de 2024, reportando ingresos de 27,1 millones de dólares, un aumento del 42,8% en comparación con el año anterior. La compañía logró un EBITDA ajustado no-GAAP de 6,0 millones de dólares, una caída del 33,6% con respecto al tercer trimestre de 2023. La capacidad de auto-minado operativo de TeraWulf creció un 100% alcanzando 10,0 EH/s. Las actividades estratégicas clave incluyeron la venta de su participación en la JV Nautilus, la obtención de un nuevo contrato de arrendamiento en el Lago Mariner, una oferta de notas convertibles de 500 millones de dólares y una recompra de acciones por 200 millones de dólares.
TeraWulf auto-minó 555 bitcoin, una disminución del 43,4% en comparación con el tercer trimestre de 2023, con el valor por bitcoin auto-minado aumentando un 117,3% a 61,075 dólares. El costo de energía por bitcoin auto-minado aumentó a 30,448 dólares debido al aumento de la dificultad de la red y la reducción a la mitad del bitcoin. La compañía completó un proyecto de hosting HPC de 2,5 MW y está expandiendo su infraestructura HPC.
El CEO Paul Prager enfatizó la sólida posición de la empresa para el crecimiento, mientras que el CFO Patrick Fleury destacó el financiamiento de 500 millones de dólares para respaldar los planes de crecimiento hasta mediados de 2025.
TeraWulf는 2024년 3분기 재무 결과를 발표하며 2710만 달러의 수익을 보고했으며, 이는 전년 대비 42.8% 증가한 수치입니다. 회사는 비GAAP 조정 EBITDA가 600만 달러로 2023년 3분기 대비 33.6% 감소했습니다. TeraWulf의 자가 채굴 운영 능력은 100% 증가하여 10.0 EH/s에 달했습니다. 주요 전략 활동으로는 Nautilus JV 지분 매각, Lake Mariner에서의 새로운 임대 계약 확보, 5억 달러 규모의 전환사채 제공, 그리고 2억 달러 규모의 자사주 매입이 포함되었습니다.
TeraWulf는 555비트코인을 자가 채굴했으며, 이는 2023년 3분기 대비 43.4% 감소한 수치입니다. 자가 채굴된 비트코인당 가치는 117.3% 증가하여 61,075달러에 이르렀습니다. 자가 채굴된 비트코인당 전력 비용은 네트워크 난이도 증가와 비트코인 반감기로 인해 30,448달러로 증가했습니다. 회사는 2.5MW HPC 호스팅 프로젝트를 완료했으며 HPC 인프라를 확장하고 있습니다.
CEO Paul Prager는 회사의 강력한 성장 위치를 강조했으며, CFO Patrick Fleury는 2025년 중반까지의 성장 계획을 지원하기 위한 5억 달러의 자금을 강조했습니다.
TeraWulf a annoncé ses résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires de 27,1 millions de dollars, représentant une augmentation de 42,8% par rapport à l'année précédente. L'entreprise a réalisé un EBITDA ajusté non-GAAP de 6,0 millions de dollars, en baisse de 33,6% par rapport au troisième trimestre 2023. La capacité d'auto-minage opérationnelle de TeraWulf a augmenté de 100%, atteignant 10,0 EH/s. Les principales activités stratégiques ont inclus la vente de sa participation dans la joint-venture Nautilus, la sécurisation d'un nouveau bail au lac Mariner, une offre de billets convertibles de 500 millions de dollars et un rachat d'actions de 200 millions de dollars.
TeraWulf a auto-miné 555 bitcoins, soit une diminution de 43,4% par rapport au troisième trimestre 2023, avec une valeur par bitcoin auto-miné augmentant de 117,3% pour atteindre 61 075 dollars. Le coût de l'électricité par bitcoin auto-miné a augmenté à 30 448 dollars en raison de l'augmentation de la difficulté du réseau et de la réduction de moitié des bitcoins. L'entreprise a achevé un projet d'hébergement HPC de 2,5 MW et est en train d'étendre son infrastructure HPC.
Le PDG Paul Prager a souligné la forte position de l'entreprise en matière de croissance, tandis que le directeur financier Patrick Fleury a mis en avant le financement de 500 millions de dollars pour soutenir les plans de croissance jusqu'à mi-2025.
TeraWulf hat seine Finanzzahlen für das 3. Quartal 2024 bekannt gegeben und berichtet von einem Umsatz von 27,1 Millionen Dollar, was einem 42,8% Anstieg im Jahresvergleich entspricht. Das Unternehmen erzielte ein nicht-GAAP bereinigtes EBITDA von 6,0 Millionen Dollar, ein Rückgang um 33,6% im Vergleich zum 3. Quartal 2023. Die operative Selbstabbaukraft von TeraWulf wuchs um 100% auf 10,0 EH/s. Zu den wichtigsten strategischen Aktivitäten gehörten der Verkauf seines Anteils an der Nautilus-JV, die Sicherung eines neuen Pachtvertrags am Lake Mariner, ein Angebot von wandelbaren Schuldverschreibungen über 500 Millionen Dollar und ein Aktienrückkauf von 200 Millionen Dollar.
TeraWulf hat 555 Bitcoin selbst abgebaut, was einem Rückgang von 43,4% im Vergleich zum 3. Quartal 2023 entspricht, während der Wert pro selbst abgebautem Bitcoin um 117,3% auf 61.075 Dollar gestiegen ist. Die Energiekosten pro selbst abgebautem Bitcoin stiegen auf 30.448 Dollar aufgrund der erhöhten Netzwerkkonfiguration und der Bitcoin-Halbierung. Das Unternehmen hat ein HPC-Hosting-Projekt mit 2,5 MW abgeschlossen und baut seine HPC-Infrastruktur aus.
CEO Paul Prager betonte die starke Wachstumsposition des Unternehmens, während CFO Patrick Fleury die Finanzierung von 500 Millionen Dollar hervorhob, um die Wachstumspläne bis Mitte 2025 zu unterstützen.
- Revenue increased by 42.8% year-over-year to $27.1 million.
- Operational self-mining capacity grew 100% to 10.0 EH/s.
- Successful $500 million convertible note offering.
- Inaugural $200 million share repurchase program approved.
- Completed 2.5 MW HPC hosting proof-of-concept project.
- Non-GAAP adjusted EBITDA decreased by 33.6% to $6.0 million.
- Self-mined bitcoin decreased by 43.4% year-over-year.
- Power cost per bitcoin self-mined increased by 226.6% to $30,448.
Insights
TeraWulf's Q3 2024 results show mixed performance with notable strategic shifts. Revenue grew 42.8% YoY to
Key strategic moves include the
The post-halving environment has significantly impacted operations, with power costs per bitcoin rising to
The infrastructure expansion strategy shows promising developments. The completion of a 2.5 MW HPC proof-of-concept and planned construction of larger facilities (20 MW CB-1 and 50 MW CB-2) positions TeraWulf well in the growing HPC market. The new Lake Mariner ground lease securing 750 MW of infrastructure capacity provides significant scaling potential.
The operational self-mining capacity doubled YoY to 10.0 EH/s, though actual operating hash rate averaged 8.1 EH/s due to various operational factors. The planned increase to 8.7 EH/s through XP miner reinstallation indicates continued optimization efforts.
Q3 2024 Revenue of
Revenue growth of
Operational self-mining capacity as of September 30, 2024 increased
Subsequent to Q3 2024, strategic activities included: (i) sale of Nautilus JV interest, (ii) new Lake Mariner ground lease, (iii) convertible note offering and (iv) share buyback.
EASTON, Md., Nov. 12, 2024 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a leading owner and operator of vertically integrated, next-generation digital infrastructure powered by predominantly zero-carbon energy, today announced its unaudited interim financial results for the third quarter of fiscal year 2024 and provided an operational update.
Third Quarter 2024 GAAP Operational and Financial Highlights
- Self-mined 442 bitcoin at the Lake Mariner Facility.
- Revenue increased to
$27.1 million in Q3 2024 compared to$19.0 million in Q3 2023. - Cost of revenue (exclusive of depreciation) increased to
$14.7 million in Q3 2024 compared to$8.3 million in Q3 2023. - Total self-mining hashrate capacity of 10.0 EH/s as of September 30, 2024, representing an increase of
100.0% relative to the same prior year period.
| Key GAAP Metrics ($ in thousands) | Three Months Ended Q3 2024 | Three Months Ended Q3 2023 | % Change | |||||
| Revenue | $ | 27,059 | $ | 18,955 | 42.8 | % | ||
| Cost of revenue (exclusive of depreciation) | $ | 14,660 | $ | 8,268 | 77.3 | % | ||
| Cost of revenue as % of revenue | 54.2 | % | 43.6 | % | 24.3 | % | ||
Third Quarter 2024 Non-GAAP Operational and Financial Highlights
- Self-mined 555 bitcoin across the Lake Mariner and Nautilus Cryptomine facilities, which represented a
43.4% decrease relative to in Q3 2023. - Total value of bitcoin self-mined1 of
$33.9 million in Q3 2024 compared to$27.6 million in Q3 2023. - Power cost per bitcoin self-mined increased year-over-year, to
$30,448 per bitcoin in Q3 2024 from$9,322 per bitcoin in Q3 2023, due to an approximate doubling in network difficulty and the bitcoin reward halving in April 2024. - Adjusted EBITDA of
$6.0 million in Q3 2024, an decrease of33.6% from$9.0 million in Q3 2023.
| Key Non-GAAP Metrics2 | Three Months Ended Q3 2024 | Three Months Ended Q3 2023 | % Change | |||
| Bitcoin Self-Mined3 | 555 | 981 | (43.4 | ) % | ||
| Value per Bitcoin Self-Mined4 | $ | 61,075 | $ | 28,104 | 117.3 | % |
| Power Cost per Bitcoin Self-Mined5 | $ | 30,448 | $ | 9,322 | 226.6 | % |
| Avg. Operating Hash Rate (EH/s)6 | 8.1 | 5.0 | 62.0 | % | ||
Recent Events Subsequent to Third Quarter 2024
- Completed sale of
25% equity interest in the Nautilus joint venture to its partner, a subsidiary of Talen Energy Corporation. - Completed construction of 2.5 MW HPC hosting proof-of-concept project at Lake Mariner.
- Entered into new, long-term ground lease agreement at Lake Mariner extending both term and land area to support the Company’s expansion into HPC hosting.
- Announced board of director approval for
$200.0 million inaugural share repurchase program. - Completed
$500.0 million convertible notes offering and simultaneous repurchase of$115.0 million worth of TeraWulf shares.
________________________________
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 condensed 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 condensed 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 Q3 2024 and Q3 2023 calculations excludes 0 and 14 bitcoin, respectively, earned via hosting profit share.
6 While nameplate inventory for TeraWulf’s two facilities was 10.0 EH/s and 5.5 EH/s as of Q3 2024 and Q3 2023, respectively, 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. Average operating hash rate for Q3 2023 also includes hash rate related to a hosting agreement that expired in February 2024 at the Lake Mariner Facility.
Management Commentary
“The third quarter and the beginning of the fourth quarter marked a pivotal turning point for TeraWulf, as we delivered strong results across our strategic, financial, and operational objectives,” said Paul Prager, Chairman and CEO of TeraWulf. “The sale of our interest in the Nautilus joint venture not only generated a substantial return but also sharpened our focus on scaling high-performance computing at Lake Mariner. Securing an expanded ground lease with exclusive rights to 750 MW of infrastructure capacity is a significant milestone in our growth strategy. Combined with the success of our
Prager continued, “We are excited about the surging demand for high-performance computing and the unique opportunity it presents for TeraWulf. Our power-ready energy assets offer a competitive advantage unmatched in the industry, providing a strong foundation as we scale our energy and digital infrastructure capabilities. We are focused on securing a customer contract by year-end, and remain dedicated to delivering outstanding value for our shareholders.”
Patrick Fleury, TeraWulf’s CFO added, "We are fully funded to execute our growth plans through the first half of 2025. In October, we secured
Operations Update
TeraWulf's current operational Bitcoin mining capacity includes approximately 195 MW at the Lake Mariner Facility. With the ongoing reinstallation of XP miners from Nautilus, the Company expects to increase its total self-mining hash rate to approximately 8.7 EH/s in the near term.
On the WULF Compute front, TeraWulf is actively expanding its HPC hosting infrastructure at Lake Mariner. Notable milestones include the successful completion of a 2.5 MW HPC proof-of-concept project, specifically designed to support both current and next-generation GPU technologies. The construction of CB-1, a 20 MW Tier 3-grade HPC hosting facility, is progressing on schedule and is expected to be completed by Q1 2025. Preparations for CB-2, a 50 MW HPC hosting facility, are also well advanced, with key components already secured, positioning the Company for a timely launch by the end of Q2 2025.
Third Quarter 2024 GAAP Financial Results
Revenue in the third quarter of 2024 increased
Cost of revenue (exclusive of depreciation) in the third quarter of 2024 increased
During the third quarter of 2024, the Company repaid
About TeraWulf
TeraWulf develops, owns, and operates environmentally sustainable, next-generation data center infrastructure in the United States, specifically designed for Bitcoin mining and high-performance computing. Led by a team of seasoned energy entrepreneurs, the Company owns and operates the Lake Mariner facility situated on the expansive site of a now retired coal plant in Western New York. Currently, TeraWulf generates revenue primarily through Bitcoin mining, leveraging predominantly zero-carbon energy sources, including hydroelectric and nuclear power. Committed to environmental, social, and governance (ESG) principles that align with its business objectives, TeraWulf aims to deliver industry-leading economics in mining and data center operations 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, 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.
Investors:
Investors@terawulf.com
Media:
media@terawulf.com
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023
(In thousands, except number of shares and par value; unaudited)
| September 30, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 23,938 | $ | 54,439 | |||
| Digital currency | 297 | 1,801 | |||||
| Prepaid expenses | 3,091 | 4,540 | |||||
| Other receivables | 4,383 | 1,001 | |||||
| Other current assets | 706 | 806 | |||||
| Total current assets | 32,415 | 62,587 | |||||
| Equity in net assets of investee | 79,494 | 98,613 | |||||
| Property, plant and equipment, net | 283,098 | 205,284 | |||||
| Right-of-use asset | 10,188 | 10,943 | |||||
| Other assets | 710 | 679 | |||||
| TOTAL ASSETS | $ | 405,905 | $ | 378,106 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 19,770 | $ | 15,169 | |||
| Accrued construction liabilities | 5,040 | 1,526 | |||||
| Other accrued liabilities | 7,080 | 9,179 | |||||
| Share based liabilities due to related party | — | 2,500 | |||||
| Other amounts due to related parties | 472 | 972 | |||||
| Current portion of operating lease liability | 53 | 48 | |||||
| Insurance premium financing payable | — | 1,803 | |||||
| Current portion of long-term debt | — | 123,465 | |||||
| Total current liabilities | 32,415 | 154,662 | |||||
| Operating lease liability, net of current portion | 859 | 899 | |||||
| Long-term debt | — | 56 | |||||
| TOTAL LIABILITIES | 33,274 | 155,617 | |||||
| Commitments and Contingencies (See Note 12) | |||||||
| STOCKHOLDERS' EQUITY: | |||||||
| Preferred stock, | 9,273 | 9,273 | |||||
| Common stock, | 383 | 277 | |||||
| Additional paid-in capital | 666,055 | 472,834 | |||||
| Accumulated deficit | (303,080 | ) | (259,895 | ) | |||
| Total stockholders’ equity | 372,631 | 222,489 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 405,905 | $ | 378,106 | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(In thousands, except number of shares and loss per common share; unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 27,059 | $ | 18,955 | $ | 105,066 | $ | 45,944 | |||||||
| Costs and expenses: | |||||||||||||||
| Cost of revenue (exclusive of depreciation shown below) | 14,660 | 8,268 | 42,986 | 18,383 | |||||||||||
| Operating expenses | 729 | 442 | 2,311 | 1,218 | |||||||||||
| Operating expenses – related party | 856 | 779 | 2,619 | 2,015 | |||||||||||
| Selling, general and administrative expenses | 8,502 | 5,767 | 29,904 | 18,137 | |||||||||||
| Selling, general and administrative expenses – related party | 2,976 | 4,519 | 8,399 | 10,093 | |||||||||||
| Depreciation | 15,643 | 8,224 | 44,864 | 20,085 | |||||||||||
| Gain on fair value of digital currency, net | (951 | ) | — | (1,580 | ) | — | |||||||||
| Realized gain on sale of digital currency | — | (697 | ) | — | (1,883 | ) | |||||||||
| Impairment of digital currency | — | 922 | — | 2,231 | |||||||||||
| Impairment of property, plant, and equipment | 355 | — | 355 | — | |||||||||||
| Loss on disposals of property, plant, and equipment | — | 420 | — | 420 | |||||||||||
| Total costs and expenses | 42,770 | 28,644 | 129,858 | 70,699 | |||||||||||
| Operating loss | (15,711 | ) | (9,689 | ) | (24,792 | ) | (24,755 | ) | |||||||
| Interest expense | (409 | ) | (10,251 | ) | (16,779 | ) | (25,535 | ) | |||||||
| Loss on extinguishment of debt | (4,273 | ) | — | (6,300 | ) | — | |||||||||
| Other income | 339 | 59 | 1,286 | 113 | |||||||||||
| Loss before income tax and equity in net income (loss) of investee | (20,054 | ) | (19,881 | ) | (46,585 | ) | (50,177 | ) | |||||||
| Income tax benefit | — | — | — | — | |||||||||||
| Equity in net income (loss) of investee, net of tax | (2,679 | ) | 850 | 3,363 | (12,613 | ) | |||||||||
| Loss from continuing operations | (22,733 | ) | (19,031 | ) | (43,222 | ) | (62,790 | ) | |||||||
| Loss from discontinued operations, net of tax | — | (68 | ) | — | (106 | ) | |||||||||
| Net loss | (22,733 | ) | (19,099 | ) | (43,222 | ) | (62,896 | ) | |||||||
| Preferred stock dividends | (300 | ) | (272 | ) | (878 | ) | (796 | ) | |||||||
| Net loss attributable to common stockholders | $ | (23,033 | ) | $ | (19,371 | ) | $ | (44,100 | ) | $ | (63,692 | ) | |||
| Loss per common share: | |||||||||||||||
| Continuing operations | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.13 | ) | $ | (0.32 | ) | |||
| Discontinued operations | - | — | - | — | |||||||||||
| Basic and diluted | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.13 | ) | $ | (0.32 | ) | |||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic and diluted | 382,086,768 | 221,718,367 | 337,999,865 | 199,259,314 | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(In thousands; unaudited)
| Nine Months Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net loss | $ | (43,222 | ) | $ | (62,896 | ) | |
| 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 | 10,931 | 14,316 | |||||
| Related party expense to be settled with respect to common stock | — | 2,502 | |||||
| Common stock issued for interest expense | — | 26 | |||||
| Stock-based compensation expense | 14,181 | 4,023 | |||||
| Depreciation | 44,864 | 20,085 | |||||
| Amortization of right-of-use asset | 755 | 750 | |||||
| Revenue recognized from digital currency mined and hosting services | (104,461 | ) | (41,936 | ) | |||
| Gain on fair value of digital currency, net | (1,580 | ) | — | ||||
| Realized gain on sale of digital currency | — | (1,883 | ) | ||||
| Impairment of digital currency | — | 2,231 | |||||
| Proceeds from sale of digital currency | 97,559 | 52,570 | |||||
| Digital currency paid as consideration for services | 278 | — | |||||
| Impairment of property, plant, and equipment | 355 | — | |||||
| Loss on disposals of property, plant, and equipment | — | 420 | |||||
| Loss on extinguishment of debt | 6,300 | — | |||||
| Equity in net (income) loss of investee, net of tax | (3,363 | ) | 12,613 | ||||
| Loss from discontinued operations, net of tax | — | 106 | |||||
| Changes in operating assets and liabilities: | |||||||
| Decrease in prepaid expenses | 1,449 | 2,735 | |||||
| Increase in other receivables | (3,382 | ) | (2,723 | ) | |||
| Decrease (increase) in other current assets | 336 | (97 | ) | ||||
| (Increase) decrease in other assets | (148 | ) | 69 | ||||
| Increase (decrease) in accounts payable | 499 | (3,936 | ) | ||||
| Decrease in other accrued liabilities | (2,499 | ) | (3,463 | ) | |||
| Decrease in other amounts due to related parties | (515 | ) | (2,396 | ) | |||
| Decrease in operating lease liability | (35 | ) | (31 | ) | |||
| Net cash provided by (used in) operating activities from continuing operations | 18,302 | (6,915 | ) | ||||
| Net cash provided by operating activities from discontinued operations | — | 283 | |||||
| Net cash provided by (used in) operating activities | 18,302 | (6,632 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Investments in joint venture | — | (2,845 | ) | ||||
| Purchase of and deposits on plant and equipment | (114,307 | ) | (41,392 | ) | |||
| Proceeds from sale of digital currency | 31,911 | — | |||||
| Net cash used in investing activities | (82,396 | ) | (44,237 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Principal payments on long-term debt | (139,401 | ) | — | ||||
| Payments of prepayment fees associated with early extinguishment of long-term debt | (1,261 | ) | — | ||||
| Proceeds from insurance premium and property, plant and equipment financing | 211 | 790 | |||||
| Principal payments on insurance premium and property, plant and equipment financing | (2,103 | ) | (2,613 | ) | |||
| Proceeds from issuance of common stock, net of issuance costs paid of | 188,715 | 57,664 | |||||
| Proceeds from exercise of warrants | 4,193 | 2,500 | |||||
| Payments of tax withholding related to net share settlements of stock-based compensation awards | (16,761 | ) | (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 | 33,593 | 49,141 | |||||
| Net change in cash and cash equivalents | (30,501 | ) | (1,728 | ) | |||
| Cash and cash equivalents at beginning of period | 54,439 | 8,323 | |||||
| Cash and cash equivalents at end of period | $ | 23,938 | $ | 6,595 | |||
| Cash paid during the period for: | |||||||
| Interest | $ | 6,955 | $ | 15,542 | |||
| 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 (“U.S. GAAP”), we disclose Adjusted EBITDA as a non-GAAP measure. This measure is not a financial measure calculated in accordance with U.S. GAAP, and it should not be considered as a substitute for net income, operating income, or any other measure calculated in accordance with U.S. 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 U.S. GAAP and should not be considered as an alternative to operating loss or any other measure of performance derived in accordance with U.S. 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 U.S. 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 condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP.
The following table is a reconciliation of the Company’s non-GAAP Adjusted EBITDA to its most directly comparable U.S. GAAP measure (i.e., net loss attributable to common stockholders) for the periods indicated (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss attributable to common stockholders | $ | (23,033 | ) | $ | (19,371 | ) | $ | (44,100 | ) | $ | (63,692 | ) | |||
| Adjustments to reconcile net loss attributable to common stockholders to non-GAAP Adjusted EBITDA: | |||||||||||||||
| Preferred stock dividends | 300 | 272 | 878 | 796 | |||||||||||
| Loss from discontinued operations, net of tax | — | 68 | — | 106 | |||||||||||
| Equity in net (income) loss of investee, net of tax | 2,679 | (850 | ) | (3,363 | ) | 12,613 | |||||||||
| Distributions from investee, related to Nautilus | 3,395 | 6,739 | 22,482 | 11,682 | |||||||||||
| Income tax benefit | — | — | — | — | |||||||||||
| Other income | (339 | ) | (59 | ) | (1,286 | ) | (113 | ) | |||||||
| Loss on extinguishment of debt | 4,273 | — | 6,300 | — | |||||||||||
| Interest expense | 409 | 10,251 | 16,779 | 25,535 | |||||||||||
| Depreciation | 15,643 | 8,224 | 44,864 | 20,085 | |||||||||||
| Amortization of right-of-use asset | 252 | 249 | 755 | 750 | |||||||||||
| Stock-based compensation expense | 2,408 | 1,413 | 14,181 | 4,023 | |||||||||||
| Related party expense to be settled with respect to common stock | — | 2,085 | — | 2,502 | |||||||||||
| Non-GAAP Adjusted EBITDA | $ | 5,987 | $ | 9,021 | $ | 57,490 | $ | 14,287 | |||||||
FAQ
What was TeraWulf's revenue for Q3 2024?
How did TeraWulf's non-GAAP adjusted EBITDA perform in Q3 2024?
What is TeraWulf's operational self-mining capacity as of Q3 2024?
What was the power cost per bitcoin self-mined for TeraWulf in Q3 2024?
What strategic activities did TeraWulf complete after Q3 2024?
