TeraWulf (WULF) Investor Update summary

Strategic Expansion and Partnership Highlights

• Announced a major strategic expansion into high-performance compute (HPC) with a 72.5 MW data center lease agreement with Core42, a subsidiary of G42, at the Lake Mariner facility in New York, with phased production from Q1 to Q3 2025.

• The agreement includes an option for Core42 to expand by an additional 135 MW (108 MW critical IT load), reflecting strong market demand and scalability.

• The lease is backed by a parent guarantee from G42, enhancing financial security and credit quality.

• Collaboration with top-tier advisors and technology partners, including Milbank, J.P. Morgan, Morgan Stanley, NVIDIA, Dell, and HPE, ensures robust execution and future-proof infrastructure.

• The facility will support Core42's GPU clusters using Dell's liquid-cooled PowerEdge XE9680L servers, enabling advanced AI infrastructure for US customers.

Economic and Operational Details

• The 10-year initial lease term (with two 5-year extensions) covers 60 MW of critical IT load, generating $1.5 million per MW annually, with a 3% annual escalator.

• Estimated build cost is $6 million per MW, targeting a 17-18% unlevered yield and 70% EBITDA margin.

• A 12-month revenue prepayment is included, credited back through a 50% reduction until fully repaid.

• The leases include two five-year renewal options, ensuring a long-term, stable, high-margin revenue stream.

• The first equipment deliveries are expected as early as January, with the initial building online by the end of Q1 2025.

Market Positioning and Future Outlook

• The company is actively evaluating additional sites and remains in dialogue with other potential tenants for future expansions.

• The Lake Mariner site benefits from operational synergies, experienced staff, and access to predominantly green power, which is expected to become increasingly valuable.

• The business model is likened to traditional power infrastructure, with long-term, high-credit tenants and predictable revenue streams.

• Plans to explore REIT conversion as the business scales and generates significant free cash flow.

• Project financing for the current and future phases is expected to begin in Q1, with execution likely by mid-year.