TeraWulf (WULF) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $35.6 million, up 130% year-over-year, with gross profit (excl. depreciation) of $21.7 million and Adjusted EBITDA of $19.5 million.

• Self-mined 699 bitcoin in Q2 2024, a 21% year-over-year decrease, but mining capacity rose 80% to 8.8 EH/s and value per bitcoin self-mined increased 135.9% to $65,984.

• Fully repaid all debt in July 2024, eliminating $75.8 million in loans and strengthening the balance sheet.

• Expanded into AI and HPC with the Wulf Den project, purchasing a 128-GPU NVIDIA cluster and advancing the CB-1 colocation project.

• Maintained industry-leading low power costs, targeting $0.035/kWh in 2024, with 93%+ zero-carbon energy across two sites.

Financial highlights

• Q2 2024 revenue: $35.6 million, up from $15.5 million in Q2 2023; gross profit (excl. depreciation): $21.7 million; Adjusted EBITDA: $19.5 million, up 156% year-over-year.

• Gross profit margin was 61% (GAAP) and 63% (non-GAAP); EBITDA per EH was $2.4 million.

• Net loss attributable to common stockholders was $11.2 million for Q2 2024, improved from $17.8 million in Q2 2023.

• Cash and cash equivalents at June 30, 2024: $104.1 million; net working capital: $18.5 million.

• Power cost per bitcoin mined was $22,954 in Q2 2024, up from $6,688 year-over-year.

Outlook and guidance

• Growth plans for the remainder of 2024 are fully funded, with no need for additional equity financing in the near term.

• Projected full-year 2024 realized cost-to-mine per bitcoin of ~$40,000, with annual power cost guidance of $0.035/kWh.

• Building 5 at Lake Mariner under construction, targeting 50 MW by Q1 2025; Nautilus expansion of 50 MW planned for 2025.

• 20-MW CB-1 HPC/AI building and Wulf Den 2-MW project expected to be operational by year-end 2024; 150 MW of AI/HPC capacity targeted for 2025.

• Company expects to meet obligations and fund growth through cash flow, bitcoin sales, and equity issuance.