TeraWulf Announces December 2022 Production and Operations Updates

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Proprietary mining produced 125 Bitcoin on Dec 22, bringing the Q4 22 total to 378 Bitcoin, reflecting an increase of over 220% from Bitcoin produced in Q3 22

Total fleet of deployed miners reached 18,000 with over 2.0 PE/s hash rate as of December 31, 2022

On track to bring 15,000 additional miners online at Nautilus Cryptomine in Q1 2023

EASTON, Md., January 09, 2023–(BUSINESS WIRE)–Today, TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates national vertically integrated bitcoin mining facilities powered by over 91% carbon-free energy, provided an unaudited monthly production and operations update for December 2022.

December 2022 Highlights

Self-mined 125 Bitcoins in December 2022 for a total of 378 Bitcoins produced in Q4 2022, a 223% increase from 117 Bitcoins produced in Q3 2022.

The fleet of deployed miners has grown to around 18,000 with a hash rate capability of over 2.0 PE/s.

Sailed successfully in extreme operating conditions during Winter Storm Elliot (the “Storm”), quickly returning to full strength when the storms closed.

Despite the weather-related price volatility in December, the Company expects an average electricity cost of approximately $0.035/kWh at its two sites.

Key indicators

Q32022

October2022

november2022

december20221

Bitcoin (self-mined)

117

119

134

125

Autonomous Mining Revenue ($M)

$2.4

$2.3

$2.4

$2.1

Lodging revenue ($M)

$1.4

$0.9

$0.7

$0.9

Energy cost ($M)

$4.8

$2.0

$1.4

$2.2

Avg. Operational hash rate (EH/s)

0.7

1.6

1.9

1.5

Income per bitcoin

$20,657

$19,646

$17,617

$17,005

Energy cost per bitcoin

$20,732

$11,060

$6,151

$12,984

Production and operations update

The company operates around 18,000 bitcoin miners with hash rate capacity over 2.0 PE/s at its Lake Mariner facility. Around 11,500 are proprietary miners with a hash rate capacity of around 1.4 PE/s. The approximately 6,500 remaining miners (0.7 PE/s) are operated under hosting agreements where the Company receives a royalty and participates financially in mining profits.

The story continues

In December 2022, the Company received approximately 4,500 miners and an additional 3,750 miners were delivered in the first week of January 2023 by Bitmain Technologies Limited (“Bitmain”). The company is expected to receive over 18,000 additional miners from Bitmain over the next few months. Upcoming deliveries will fill the company’s 160 MW of mining capacity available at the start of the second quarter of 2023 with 34,000 miners (110 MW) at its Lake Mariner facility and 15,000 miners (50 MW) at its Nautilus facility.

Electricity prices rose dramatically during the severe weather event that swept through most of the United States in December, increasing the costs of operating Lake Mariners during local impact days. The Lake Mariner facility sources electricity at attractive prices from Western New York, where 91% of the market’s power comes from carbon-free resources, including the Niagara Hydroelectric Generating Station, 35 miles away. of the Lake Mariner facility. Since Storms’ departure, New York market prices have corrected back to pre-December levels. The Nautilus Cryptomine, located in Berwick, Pennsylvania, is directly connected to the Susquehanna nuclear power plant and pays a five-year fixed price of $0.02/kWh, among the lowest in the Bitcoin mining industry. The Company is maintaining its estimated average electricity cost of approximately $0.035/kWh for its entire portfolio.

“December represented another month of robust growth for TeraWulf. Our operations team efficiently maintained our mining operations and deployed additional miners to Lake Mariner during one of the most severe weather events in the region, while supporting the network during times of extreme stress. said Paul Prager, co-founder and CEO of TeraWulf. “We believe that the continued ramp-up of our proprietary mining capacity, coupled with our industry-leading energy costs, sets TeraWulf apart as one of the cheapest Bitcoin miners in the industry,” Prager continued. . “For 2023, we plan to aggressively increase our deployed hash rate as we continue to receive miner shipments with the goal of achieving 5.5 PE/s of sustainable operational mining capacity.”

Infrastructure update

The Company is approaching the final stages of construction at its two mine sites and expects to have a total operating capacity of 49,000 miners (5.5 PE/s) by the start of the second quarter of 2023, representing approximately 160 MW of demand. ‘electricity. Today, the 100% company-owned Lake Mariner facility has approximately 60 MW of operational mining capacity, and TeraWulf expects to reach 110 MW of capacity at the facility in the second quarter of 2023. Nautilus Cryptomine facility, a joint venture with Talen Energy Corporation, is in the early stages of ramping up its mining operations and is expected to deliver 50MW of net mining capacity to TeraWulf in the first quarter of 2023, representing the 25% interest of the company in the joint venture.

About TeraWulf

TeraWulf (Nasdaq: WULF) owns and operates vertically integrated, environmentally friendly bitcoin mining facilities in the United States. Led by an experienced group of energy entrepreneurs, the company is currently operating and/or completing construction of two mining facilities: Lake Mariner in New York and Nautilus Cryptomine in Pennsylvania. TeraWulf generates domestically produced bitcoins powered by nuclear, hydro, and solar power with the goal of using 100% carbon-free energy. With a focus on ESG directly linked to the success of its business, TeraWulf expects to deliver an attractive mining economy on 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. These forward-looking statements include statements regarding anticipated future events and expectations that are not historical facts. All statements, other than statements of historical facts, are statements that could be considered forward-looking statements. In addition, forward-looking statements are generally identified by words such as “plan”, “believe”, “objective”, “target”, “aim”, “expect”, “anticipate”, “intend”. of”, “outlook”, “estimate”, “plan”, “project”, “continue”, “could”, “may”, “could”, “possible”, “potential”, “predict”, “should” , “would” and other words and phrases, although the absence of such words or phrases does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulfs 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 anticipated. Actual results could differ materially from those expressed or implied by the forward-looking statements depending on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions of the cryptocurrency mining industry, including market price fluctuation of Bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including with respect to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among different cryptocurrency mining service providers; (3) changes in applicable laws, regulations and/or permits affecting TeraWulfs’ operations or the industries in which it operates, including regulation regarding electricity generation, the use of cryptocurrency and/or the cryptocurrency mining; (4) the ability to implement certain business objectives and execute corporate projects in a timely and cost-effective manner; (5) failure to obtain adequate funding on a timely basis and/or on acceptable terms with respect to growth strategies or operations (6) loss of public confidence in Bitcoin or other crypto- currencies and the potential for manipulation of the cryptocurrency market (7) the potential for cybercrime, money laundering, malware infections and phishing and/or loss and interference resulting from equipment malfunction or failure , physical disaster, data security breach, computer malfunction or sabotage (and costs associated with any of the above) (8) availability, delivery schedule and cost of equipment necessary to maintain and develop TeraWulf’s business and operations, including mining equipment and infrastructure equipment meeting the technical or other specifications required to achieve its strategy growth strategy; (9) employment-related factors, including the loss of key employees; (10) litigation regarding TeraWulf, RM 101 f/k/a IKONICS Corporation and/or the business combination; (11) the ability to recognize the objectives and expected benefits of the business combination; 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, shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. TeraWulf undertakes no obligation to publicly update any forward-looking statement after it is 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 discussion of risk factors contained in the company’s filings with the SEC, which are available at www.sec.gov.

December 1, 2022 results are based on estimated electricity costs, which remain subject to standard month-end adjustments.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20230106005442/en/

contacts

Sandy [email protected] (410) 770-9500

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