TeraWulf (WULF) Investor presentation summary

Strategic transaction overview

• Sold 25% equity interest in Nautilus to Talen Energy, generating ~$92M in proceeds and a 3.4x multiple on invested capital.

• Monetized interest before expiration of Nautilus's low-cost power contract and lease in June 2027, reducing risk exposure.

• Proceeds will be reinvested into Lake Mariner's HPC/AI expansion, supporting growth and liquidity.

• Transaction simplifies financial reporting by removing the equity method for Nautilus.

• Maintains Q1 2025 mining capacity target of 13.1 EH/s while upgrading fleet efficiency to 18.2 J/TH.

Operational and financial efficiency

• Upgraded mining fleet with new S21 Pro miners, increasing efficiency and reducing operational costs.

• Plans to monetize over 80% of Nautilus miners and all S19 generation miners, focusing on higher efficiency hardware.

• Lake Mariner's annual opex per MW is significantly lower than Nautilus, highlighting superior cost management.

• Enhanced miner fleet mix will result in a pro forma fleet efficiency of 18.2 J/TH and 13.1 EH/s capacity.

• Transaction enables capital allocation to areas with the greatest operational efficiency and growth potential.

Growth and capital allocation

• Q4 2024 cash flow and Nautilus proceeds fully fund 20 MW CB-1 capex and support further expansion.

• 2025 capital allocation focuses on HPC/AI contracts, with substantial cash flow projected from prepayments and project financing.

• Lake Mariner facility expansion to 500 MW planned, with 20 MW CB-1 operational in Q1 2025 and 50 MW CB-2 in Q2 2025.

• Additional 178 MW expected to be available in 2H25, with future 250 MW design based on customer demand.

• Transaction aligns investments with areas of highest value creation and operational efficiency.