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Previously announced initiatives enable operational resilience in a low-cost bitcoin environment
Lake Mariner’s operations are not affected by the recently signed moratorium in New York State
Easton, MD, November 28, 2022—(BUSINESS WIRE)–TeraWulf Inc. (Nasdaq: VULF) (“TeraWulf” or the “Company”), which today owns and operates vertically integrated, domestic Bitcoin mining facilities powered by more than 91% carbon-free energy provided an operational update and more details regarding its initiatives to reduce ongoing costs to ensure greater resilience of the company in the low-cost Bitcoin environment. The company also reiterated that the Lake Mariner facility is not affected by the two-year moratorium on new fossil fuel mining permits recently signed by New York state’s governor.
Operational Update
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Current online capacity of 60 MW and a deployed mining fleet of 17,500 miners with a hash rate of approximately 2.0 EH/s, consisting of 1.34 EH/s standalone mining and 0.65 EH/s hosted at the Lake Mariner facility.
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The company independently mined 119 bitcoins in October 2022, a 76% increase over the amount mined in September 2022, and the strong upward trajectory continued in November.
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Self-mining approximately 4.6 bitcoins per day, which is 28% higher than the 3.6 bitcoins per day after Q3 2022 exit.
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Construction on the two sites is estimated to be completed in the first quarter of 2023, providing 160 MW and an operational capacity of 6.6 EH/s, including 4.2 EH/s of stand-alone mining.
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A recent amendment to Nautilus Cryptomine’s joint venture agreement with an affiliate of Talen Energi Corp. (“Nautilus JV”) maximizes TeraWulf’s 50 MW share of five-year contracted power at $0.02/kWh, for an expected average of $0.035/kWh for the two sites.
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Recently announced cost reduction initiatives targeting 25%+ in cost savings over the next 12 months, delivering a lower cost structure to ensure resilience and a faster path to profitability.
Updating mining facilities
After powering up Building 1 (50 MW) in Q3 2022 at the Lake Mariner facility in New York, TeraWulf continues to rapidly expand its standalone mining capabilities. Construction activities on Building 2, also 50 MW, are largely complete and the Company expects to reach a total capacity of 110 MW at the Lake Mariner facility in Q1 2023. Currently, the Company operates approximately 11,000 in-house miners and 6,500 miners with plans to deploy an additional 7,000 proprietary miners in Q1 2023 at the Lake Mariner facility. TeraWulf’s priority is to utilize the open capacity (10,000 – 12,000 slots) at Lake Mariner for standalone mining, but will continue to evaluate potential hosting arrangements that leverage the Company’s vertical integration and optimize capital efficiency.
The Nautilus Cryptomine facility, which has access to an initial 200 MW of mining capacity from Talen’s 2.3 GW Susquehanna Nuclear Station in Pennsylvania, with an option for an incremental 100 MW, is in the final stages of construction and is slated to begin full-scale mining. in Q1 2023. Pursuant to the Nautilus JV, TeraWulf owns and is expected to use 50 MW of mining capacity at a five-year contracted fixed rate of $0.02 per kilowatt hour, among the lowest electricity prices in the sector. The Company has received or is awaiting delivery of approximately 15,000 miners (1.7 EH/s) to fill its 50-MW stake in the Nautilus Cryptomine facility in Q1 2023. Miners for TeraWulf’s stake in Nautilus Cryptomine have been paid and the Company does not expect to be required additional capital expenditure related to infrastructure.
TeraWulf continues to aim to achieve a total of approximately 6.6 EH/s of operational mining capacity across its two mining facilities in Q1 2023.
The NI Crypto Moratorium will not affect the Lake Mariner facility
On November 22, 2022, New York State Governor Kathy Hochul signed into law legislation approved by the State Assembly earlier this year that limits the issuance of new air permits for proof-of-work mining operations. obtaining energy from fossil fuel power plants.
This legislation does not affect operations at TeraWulf’s Lake Mariner Facility in New York because the facility does not get its power directly from a fossil fuel plant, but instead uses >91% sustainable, carbon-free energy from the grid.
TeraWulf will continue to expand its sustainable mining footprint at the Lake Mariner facility and will partner with the New York Power Authority (NIPA) and other state entities to participate in programs that provide the state’s grid with significant energy demand response capability.
Management comment
“We are pleased with the increase in mining operations that has been achieved at Mariner Lake in a short period of time and despite a difficult market environment. Given our industry leading low cost of electricity at our two mining facilities, we believe we will be one of the few players that can operate sustainably in a long-term environment of low bitcoin prices,” said Paul Prager, co-founder and CEO of TeraWulf. “Recent regulatory actions in New York serve to reinforce our belief that a sustainable carbon-free energy strategy is critical to long-term success in the bitcoin mining industry, especially at a time when bitcoin mining and cryptocurrencies in general are at greater risk. regulatory scrutiny”.
About TeraWulf
TeraWulf (Nasdaq: VULF) owns and operates vertically integrated green bitcoin mining facilities in the United States. Led by an experienced group of energy entrepreneurs, the Company is currently operating and building two mining facilities, Lake Mariner in New York and Nautilus Cryptomine in Pennsylvania, with a target of 800 MW of mining capacity to be deployed by 2025. TeraWulf generates domestic bitcoins powered by nuclear, hydro and solar power with with the goal of using 100% carbon-free energy. With a core ESG focus directly linked to its business success, TeraWulf expects to offer attractive economics of industrial-scale mining.
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 regarding expected future events and expectations that are not historical facts. All statements, other than statements of historical fact, are statements that may be considered forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “target,” “expect,” “anticipate,” “intend,” “prospect “, “estimate”, “forecast”, “project”, “continue”, “could”, “can”, “could”, “possible”, “potential”, “anticipate”, “should”, “would” and other similar words and expressions, although the absence of these words or expressions does not mean that the statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf 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 as anticipated. Actual results may differ materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, but not limited to: (1) conditions in the cryptocurrency mining industry, including fluctuations in bitcoin market prices and other cryptocurrencies, and the economics of cryptocurrency mining, including variables or factors that affect the cost, efficiency and profitability of cryptocurrency mining; (2) competition between different cryptocurrency mining service providers; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf’s business or the industries in which it operates, including regulations regarding electricity generation, use of cryptocurrencies and/or mining of cryptocurrencies; (4) ability to realize certain business goals and timely and economical execution of integrated projects; (5) inability to obtain adequate financing on time and/or on acceptable terms in connection with growth strategies or operations; (6) loss of public confidence in Bitcoin or other cryptocurrencies and the potential for manipulation of the cryptocurrency market; (7) the potential for cybercrime, money laundering, malware infections and identity theft and/or loss and disruption as a result of equipment malfunction or failure, physical disaster, data security breach, computer malfunction or sabotage (and costs associated with any of the foregoing (8 ) the availability, delivery schedule and cost of equipment necessary to maintain and develop TeraWulf’s business and operations, including mining equipment and infrastructure equipment that meet the technical or other specifications necessary to achieve the growth strategy; (9) workforce factors, including the loss of key employees ; (10) litigation related to TeraWulf, RM 101 f/k/a/ IKONICS Corporation and/or the business combination; (11) the ability to recognize the expected objectives and benefits of the business combination; and (12) other risks and uncertainties associated with from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Prospective investors, shareholders and other readers are cautioned not to rely excessively to 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 has been 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 related to forward-looking statements and to the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.
See the original version on businesswire.com: https://www.businessvire.com/nevs/home/20221127005109/en/
Contacts
Company contact:
Sandy Harrison
harrison@terawulf.com
(410) 770-9500
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