TeraWulf Announces $22 Million Debt Repayment and Increase in Self-Mining Capacity

Achieved 7.6 EH/s of self-mining online in February.

Expect to reach 8 EH/s of owned hashrate in Q1 2024 and 10 EH/s by mid-2024.

$22 million debt repayment extends cash flow sweep to maturity.

Expect another significant debt repayment in early April 2024 with cash generated in Q1 2024.

Balance sheet and liquidity continue to improve with over $50 million of cash reserve at year-end 2023.

EASTON, Md. , Feb. 15, 2024 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates vertically integrated, domestic Bitcoin mining facilities powered by more than 91% zero-carbon energy, today announced it has surpassed a total self-mining hashrate of 7.6 EH/s and has repaid an additional $22 million of its Term Loan, thereby extending the cash flow sweep to maturity.

Recent Operational and Financial Achievements

• Total self-mining hashrate reached 7.6 EH/s as of mid-February, with the Company projecting an increase to 8 EH/s by the end of Q1 2024.
• The completion of Building 4 (35 MW) at the Lake Mariner facility is anticipated to increase TeraWulf’s overall operational capacity to approximately 10 EH/s by mid-2024.
• Repaid a total of $40 million in debt to date, thereby extending the cash flow sweep to maturity of Term Loan.
• Expect another significant debt repayment in early April with cash generated in Q1 2024.

Management Commentary

“Over the past year, we have remained resolute in fulfilling our commitment to deleveraging, marking a significant financial milestone for the Company. With our industry-leading cost to mine bitcoin, we are poised to achieve another substantial debt repayment in the first week of April from the cash generated in the first quarter. This swift debt reduction underscores our confidence in the efficacy of our financial and strategic approaches, as well as the successful execution of our expansion initiatives," stated Patrick Fleury, Chief Financial Officer.

Fleury continued, "Using our website's innovative 'Cost-to-Mine Calculator'¹ and the guidance outlined in our July Investor presentation, combined with a bitcoin price of $50,000 and a network hashrate of 580 EH/s, we estimate our total mining cost to be approximately $25,000 per BTC. This positions us favorably to generate substantial cash flow in the first quarter and execute another significant debt repayment in April.”