WULF

1. Key Historical Highlights

• February 28, 2025: Announced strategic expansion into AI-driven HPC hosting with long-term data center leases expected to generate $1 billion in cumulative revenue.
• February 28, 2025: Expanded self-mining operating capacity by 94% year-over-year to 9.7 EH/s.
• February 28, 2025: Authorized a $200 million share repurchase program, executing over $150 million in repurchases.
• February 2025: Achieved significant milestones in enhancing digital infrastructure for high-performance compute and AI workloads.
• January 3, 2025: Secured HPC data center leases with Core42 for over 70 MW of infrastructure.
• December 2024: Announced the promotion of Sean Farrell to Chief Operating Officer to enhance HPC and AI data center capabilities.
• November 2024: Completed the sale of 25% equity interest in the Nautilus joint venture for $92 million.
• October 25, 2024: Completed $500 million offering of 2.75% Convertible Senior Notes due 2030.
• October 23, 2024: Board authorized a $200 million share repurchase program.
• July 9, 2024: Fully repaid term loan, eliminating all outstanding debt.
• May 2024: Mined 186 bitcoin, reaching an installed self-mining capacity of 8.0 EH/s.
• April 2024: Released inaugural Corporate Social Responsibility report, highlighting sustainability efforts.
• March 2024: Increased self-mining hash rate to 8 EH/s with new equipment.
• February 2024: Self-mined 364 bitcoin, achieving an average production rate of over 12.5 bitcoin per day.
• January 2024: Appointed new independent directors to enhance governance and strategic capabilities.

2. Financial Performance Overview

Revenue Growth

• 2024: Annual revenue increased 102% to $140.1 million, up from $69.2 million in 2023.
• Q4 2024: GAAP revenues increased by 102% year-over-year, driven by higher Bitcoin production.

Profit Margins

• 2024: Non-GAAP adjusted EBITDA increased to $60.4 million, up from $31.9 million in 2023.
• Q2 2024: Gross profit rose to $21.7 million compared to $10.3 million in Q2 2023.

Expense Management

• 2024: Proactively repaid legacy term loan debt ahead of schedule.
• October 2024: Raised $500 million through convertible senior notes to fund expansion.

Significant Financial Events

• July 2024: Eliminated all outstanding debt, enhancing financial flexibility.
• April 2024: Reported strong financial performance with meaningful free cash flow applied to reduce indebtedness.

3. Management Effectiveness

Strategic Decision-Making

• AI and HPC Hosting Expansion: Entered into long-term data center lease agreements to support AI-driven computing, diversifying revenue streams.
• Debt Management: Proactively reduced debt, enhancing financial stability and flexibility.
• Operational Capacity Expansion: Continued investment in infrastructure to increase mining and hosting capacity.

Capital Allocation

• Share Repurchase Programs: Authorized significant share repurchases, indicating confidence in the company's valuation.
• Convertible Notes Offering: Raised capital through convertible notes to support strategic investments and minimize dilution.

4. Key Quotes from Management:

• "In 2024, TeraWulf achieved significant financial and operational milestones, further solidifying our leadership in sustainable digital infrastructure." - Paul Prager, CEO, TeraWulf
• "Our disciplined financial management was reflected in our $500 million oversubscribed convertible debt offering, which strengthened our liquidity and funded our initial expansion into HPC hosting." - Patrick Fleury, CFO, TeraWulf
• "This past year was transformational for Terra Wolf. Every milestone we achieved in 2024 was intentionally designed to enhance and extend our digital infrastructure." - Paul Prager, CEO, Terra Wolf
• "We have taken decisive steps to strengthen our balance sheet, including fully retiring our debt earlier this year, while making substantial progress in executing our business strategy." - Paul Prager, CEO, TeraWulf
• "Our proactive debt reduction, dedication to financial transparency, and rapid, organic infrastructure growth coupled with our leading unit economics underscores the Company’s commitment to lead in this space – now and beyond the halving." - Patrick Fleury, CFO, TeraWulf
• "Achieving a debt-free capital structure strategically positions us to promptly capitalize on the escalating demand for our highly valuable energy infrastructure." - Patrick Fleury, CFO, TeraWulf
• "We are delighted to welcome Chris and Amanda to our board of directors, both of whom bring significant experience that is directly relevant to our strategy of being the leading low-cost, zero-carbon bitcoin mining company." - Paul Prager, CEO, TeraWulf