TERAWULF INC. Q4 FY2024 earnings call

• 2024 was transformational for TeraWulf, enhancing digital infrastructure for HPC and Bitcoin mining. - WULF Mining had profitable operations at Lake Mariner with zero carbon energy, doubling revenue and adjusted EBITDA in 2024. - Sold Nautilus Cryptomine joint venture in October 2024, freeing capital for HPC hosting buildout. - Restructured Lake Mariner ground lease to 157 acres with 35-year initial lease and 45-year extension, securing 750 megawatts of infrastructure capacity. - Secured Core42 as the first HPC customer, with a 10-year 72.5 megawatt data center lease. - 2025 focus: energize Miner Building 5, execute Core42 agreement, contract additional HPC hosting capacity, and secure project financing for HPC data center. - Financial optimization in 2024: paid off term loan, monetized Nautilus JV, raised $500 million convertible offering, and repurchased $150 million in stock.

WULF Mining: In 2024, revenue and adjusted EBITDA doubled year-over-year driven by higher Bitcoin production and favorable pricing. As of year-end, hash rate was 9.7 exahash per second with approximately 60,000 miners. Over 90% of new S21 Pro miners received; full deployment in Miner Building 5 would raise hash rate to 13.1 exahash per second and improve fleet efficiency to 18.2 joules per terahash. Mined 423 Bitcoin in the fourth quarter and 2,177 Bitcoin throughout 2024. HPC Hosting: In 2024, reached a major inflection point with the signing of a 10-year 72.5 megawatt data center lease agreement with Core42. Aim to contract and deploy 100 to 150 megawatts of HPC hosting capacity annually over the next three years. Prioritized Cayuga site in 2025, expected to add 150 megawatts of capacity in 2026 scaling to 400 megawatts by 2028.

• 2025 focus on energizing Miner Building 5 and integrating the upgraded mining fleet. - Execute on the Core42 agreement, with Core42 having an option for up to 135 megawatts of additional HPC hosting capacity by March 31, 2025. - Aim to exit 2026 with 200 to 250 megawatts of revenue-generating HPC compute capacity. - Secure project financing for HPC data center. - Anticipate providing detailed 2025 guidance to the market soon.

• 2024 fourth quarter adverse factors: planned outage in November impacting ~5.2 exahash of mining capacity for one week, miner refresh program with inoperable miners replaced, and elevated power prices in December. - Losses on disposal of property, plant, and equipment related to miners and deposit write-offs.

Q: How is Mariner positioned for inference and how does it change site acquisition strategy?

A: Paul Prager states Core42 and existing partner can handle inference, site acquisition priority is Cayuga, focusing on sites with energy, land, water, and unique energy sources.

Q: Would conversion of Bitcoin mining capacity to HPC be driven by HPC demand, Bitcoin economics?

A: Paul says it'll be based on highest value per megawatt, driven by customer demand and Bitcoin mining factors, with strong HPC demand.

Q: Status of CB-1 and plan B if Core42 option not exercised?

A: Paul refrains from commenting on Core42 discussions, but has multiple dialogues with potential counterparties.

Q: Time frame for Cayuga process and status of Lake Mariner 250 MW?

A: Paul says Cayuga process has robust governance, 250 MW is in deep discussions with potential counterparties.

Q: HPC customer strategy, focus on colo or hyperscalers?

A: Focus on colocation for high yields, but open to hyperscalers with right profile.

Q: Power price in Q4 and SG&A front loading for HPC?

A: Patrick Fleury says December power price was abnormal, SG&A increase due to staffing, run rate sustainable.

Q: Impact of Bitcoin price drop on mining plans and miner customs?

A: Paul says doesn't change strategy, focus on HPC, no customs issues with miners.

Q: Competition in site sourcing and project financing status?

A: Paul says unique in energy expertise, Patrick says high demand from lenders, project financing confidence increasing.