Expansion of existing loan facility, further solidifying partnership with lenders.
Initial delivery of latest generation S19 XP miners expected to be operational in August 2022.
EASTON, Md., July 05, 2022–(BUSINESS WIRE)–TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates fully integrated, domestic bitcoin mining facilities powered by more than 91% zero-carbon energy, announced it has entered into a first amendment to the Loan Agreement with its existing lender group for an additional $50 million of debt. The Company intends to use net proceeds towards completing the datacenter infrastructure at its Lake Mariner facility in New York and Nautilus Cryptomine facility in Pennsylvania.
In addition, the Company announced that it anticipates its initial batch of 3,000 S19 XP mining machines from the previously announced purchase agreements with Bitmain Technologies Limited (“Bitmain”) for its Lake Mariner Facility in New York will be operational in August. After the initial batch, the Company has approximately $60 million in deposits under the purchase agreements, which will be applied to additional monthly batches based on the then current prices for miners.
Irene Gao, Antminer Sales Director of NCSA Region, Bitmain, commented, “Delivery of the initial batch of S19 XPs – currently the most efficient bitcoin miner in the market – marks a key milestone for TeraWulf as they begin rapidly scaling their self-mining operations. The high-performance and low power consumption of the S19 XP miners should significantly benefit TeraWulf’s sustainable and low-cost mining business. We are confident in the Company’s vertically integrated business model as we continue to expand our long-term partnership with TeraWulf.”
TeraWulf announced it is commencing the third quarter with approximately 3,300 miners online at its Lake Mariner facility and expects to significantly ramp operations monthly with the completion of the data center infrastructure at its Lake Mariner and Nautilus Cryptomine facilities.
“Our ability to secure this new capital, together with the near-term deployment of the S19 XP miners at Lake Mariner, is further indication of TeraWulf’s continued momentum,” said Paul Prager, Chief Executive Officer and chair of the board of TeraWulf. “We expect the third quarter to be transformational for the Company as we successfully shift from major construction activities at our sites to an operational mining company with a significant ramp in hash rate.”
Mr. Prager continued, “TeraWulf’s accomplished executive team is time-tested and has been through its share of difficult market cycles. Our current priority is to ensure that we are resilient and securely positioned to not only operate and scale the business, but also take advantage of certain value-creating opportunities that might otherwise not be available during more healthy markets. It is during the present challenging market backdrop that our long-standing relationship with Bitmain and access to additional funding has enabled us to opportunistically translate our capital into deliveries of the latest generation equipment at historically low market prices, while also expecting to benefit from an increased share of the global network hashrate.”
TeraWulf previously announced that it is in the final stages of completing its first dedicated mining building at Lake Mariner, which will house approximately 50 MW of capacity. The Nautilus Cryptomine facility, a partnership between TeraWulf and Talen Energy Corporation, has also made significant construction progress and remains on target to begin mining in the third quarter.
Additional information on the terms of the amended Loan Agreement is provided in the Form 8-K filed with the Securities and Exchange Commission.
TeraWulf (Nasdaq: WULF) owns and operates fully integrated environmentally clean bitcoin mining facilities in the United States. Led by an experienced group of energy entrepreneurs, the Company is developing two mining facilities, Lake Mariner Data in New York and Nautilus Cryptomine in Pennsylvania, with the objective of 800 MW of mining capacity deployed by 2025, enabling over 23 exahash per second of expected hashrate. TeraWulf will generate domestically produced bitcoin powered by nuclear, hydro and solar energy with a goal of utilizing 100% zero-carbon energy. With a core focus of ESG that ties directly to its business success, TeraWulf expects to offer attractive mining economics at an industrial scale.
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 concerning anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s 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 those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions in the cryptocurrency mining industry, including fluctuation in the market pricing of bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including as to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among the various providers of cryptocurrency mining services; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates, including regulation regarding power generation, cryptocurrency usage and/or cryptocurrency mining; (4) the ability to implement certain business objectives and to timely and cost-effectively execute integrated projects; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to growth strategies or operations; (6) loss of public confidence in bitcoin or other cryptocurrencies and the potential for cryptocurrency market manipulation; (7) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (8) the availability, delivery schedule and cost of equipment necessary to maintain and grow the business and operations of TeraWulf, including mining equipment and infrastructure equipment meeting the technical or other specifications required to achieve its growth strategy; (9) employment workforce factors, including the loss of key employees; (10) litigation relating to TeraWulf, IKONICS and/or the business combination; (11) the ability to recognize the anticipated objectives and benefits of the business combination; and (12) and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was 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 associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.