WULF - Earnings call 3 2023

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Operator

Greetings, and welcome to the TeraWulf Inc. 2023 Third Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Jason Assad, Director of Corporate Communications. Thank you, Mr.

Assad.

begin. may You

Jason Assad

such Officer, we that subject Chairman will, forward-looking the anticipate, Good those XXXX are during operator. project, they question-and-answer Chief words are forward-looking used session. time. today welcome TeraWulf risk uncertainties TeraWulf's call everyone to our and which are similar Prager; and I'd relate Officer, These materially. Thank statements.Investors uncertainties remind and this results in forward-looking may call. afternoon get Thank involve statements quarter are could, today's on to actual earnings With are us to enable, uncertainties results like Chief may make you third anticipated from Executive When statements which Financial actual call. TeraWulf should, to differ Paul differ risk our and you, forward-looking statements me and as potential, materially and and for estimate, for our the by may and forward-looking that cautioned prepared to this expressions statements started, to we intend, additional that remarks call, Patrick subject Fleury.Before may believe, at contain risk cause joining expect,

reports other certainnon-GAAP www.terawulf.com.Finally, my the begin website comparable the non-GAAP to we'll to our website financial with call Paul now the and sec.gov are over TeraWulf's for remarks today's performance and from corporate then CEO, the that TeraWulf's to GAAP on financial turn U.S. In on Form measures reconciliation full our Q&A.It's We'll proceed in XX-K of to which we'll periodic our in addition, be and Paul? note call Patrick, refer Paul to pleasure Prager. risks prepared at call at measures. viewed measures. and these most more section on to to Securities finance refer Commission, public described fully company's may and Exchange please investor Please today's of XX-Q

Paul Prager

on everyone, you, quarter Jason. afternoon, Thank earnings XXXX Good us and you call. for that third joining thank

to TeraWulf ahead.As our third capacity which business confidence Pennsylvania. York, During zero-carbon at energy reminder some predominantly success.Before reaching the with our wholly-owned our the I and steps to year-end, in take facility facility mines Bitcoin of infrastructure jointly-owned and year centers, long-term company the our for nuclear-powered mining data further the to XXX% Patrick over Fleury, in on their proactive from growth the for of quarter, positioning turning the results, TeraWulf to recent us plan goal resources X Bitcoin joining zero-carbon of grid New by continued highlights a like Nautilus power, would and a Lake review X.X strategic exahash on financial continued to upstate execute utilizing today, call CFO, comment in on XX% everyone Mariner operated utilizes our sustainable

we per were miners where Further, XX XXX even same hash all-time year, in Bitcoins reaching combined during XX,XXX is September, a year. third during hash X had last difficulty projects the with quarter. resulted rate industrial-scale mined of As that approximately than more That of the exahash X.X deployed. these this with highs, second self-mining period triple rate,

U.S. of for hashrate, of solidly have are headlines in free Importantly, a overall of notably the an positive in our network most all-time there ETF, many approval positive.During spot Bitcoin, an the which climb high which suppress Bitcoin. been rally operations driven mining economics. cash imminent Bitcoin there Concurrently, quarter, to continues steady a has anticipation flow been the the has to price

remain our fundamental are profits, value and our of professionals, managing is and leverage to next to energy our year?As we and debt, steadfast mean the does approaching we XXXX this maximize through having return to for strategy what infrastructure resilient, shareholders. cycles low-cost the balance So repay our in to infrastructure approaching approach, how

executing final of our construction. the terms expansion the growth In initiatives, is Lake Mariner of stage infrastructure nearing

bring total the of racks advancing translates as for more will miners ready other expansion online the X.X increase in installed, a capacity. be self-mining is so XXX building hashrate they second, racked we company's that without That fully to works are energized, to self-mining preparatory and capacity per hashrate. than into are megawatts mining be can third this delay.Once XX-megawatt The and XX% company's or exahash total delivered, Bitcoin

a option Bitcoin to complete all capital-efficient and we end, XX,XXX agreements purchase quarter, miners company we structured announced of in and shareholders. $X.XXX host the manner mining the currently the to machines infrastructure, at only benefits be a dilution machines enables mining of liquidity to equipment every quarter, cannot prioritizing believe purchase capital that and third this plan infrastructure monetize the we avoiding levels. machines of convert dollar nimble new underscores the TeraWulf center highlights the owning in Importantly, efficiency emphasize and also revenue and XP without Bitmain miners' strategy fact future and a not will sector by the the prudently own to per a reiterate, to in infrastructure our challenging efficient potential which obligations.Early to we for capital-efficient Building deposits power next remaining while purchase strategically maximizing have XXXX.We could machines and unnecessary time hosting excessive we these invest for depressed of to XX,XXX XX.X during joules I month. deposits approximately of manner our strategic then preserve of which X of but XX,XXX reflects To fleets and enough, that our a and machines the fee the fleet-wide $X.XXX this to purchase To Fleury, us manage spent opportunistically fourth from types payment plug SXXj targeted thereby by expects delivered over this and share realized cost balance that and relationship dilution while to on most To expanding Bitmain development price arrangement flexibility from the responsible retains of into remain markets the with to Patrick a order per mining the kilowatt at avoid immediately at the our prioritize data these in into self-deployed, outlays mining investment The miners to our CFO, all accretive results CapEx.Once fleet, of to will Bitmain, our occurrence the meaningfulupfront agreements to any terahash a it hour. in combining dilution, X,XXX to defer unnecessary XP quarter. average like and one have profitable fully are to XX,XXX company financials SXXj of pass per continue will I'd are enable to undertake further discuss kilowatt.With of avoid remaining our the purchase roughly said,

Patrick Fleury

Paul. well as seasonally the in TeraWulf quarter, the particularly exceptionally operating performed Thank the most summer environment. third you, challenging months are

of peers the and the Nautilus temperate Mariner The in are events States in curtailment, Northeastern rigs, Paul repayment reflected less our did flow heat an our performance in outstanding resulting tear capacity the United positive with wear financial financials.As our limited a on location operating approximately with Southern QX optimizing third million. versus with conditions, the However, of the and teams of U.S. operating located and miners X.X assets generation of high blessed at mining improvements in means debt online solid job entirety our and quarter, we advantageous cash we our mentioned, Lake for realized of of exahash free $X

into monthly the operating in GAAP between there reminder our reports quick and presentation. the diving a numbers a key and quarter, guidance Before difference financials investor for the our is presented

at operating the was investee As a revenue, the and our in the reflected GAAP of consolidated venture Nautilus equity income Nautilus cost impact depreciation our of Instead, revenue, tax into and of Nautilus, net financial and of in are line joint statements. XX% not net loss the financial of is expenses, result quarter day amortization ownership about XXXX, per third the a mined 'XX. in improvement XXX and the of of over mined item Bitcoin XXX statement.In and at Bitcoin share XXX total Nautilus we net Bitcoin, a for on XQ Bitcoin of our mined XX% XXX Bitcoin Lake at income GAAP XX Mariner Bitcoin, the for

of reaching million Our quarter-over-quarter, $XX.X GAAP $XX growth outstanding 'XX. XX% XQ 'XX from saw million also revenues in in XQ

XQ self-mined of $XX.X an press quarter, 'XX. in value Nautilus, for a release.Looking per as 'XX quarter-over-quarter we this mined non-GAAP operating our Our in gross profit, defined detailed XQ averaged and million now total million monthly Bitcoin a Bitcoin increase to from at in per X% and that our saw $XX,XXX $XX.X of at reports million $XX.X includes Bitcoin metric

at cost Our in a total Bitcoin non-GAAP Nautilus, mined, $X,XXX that in power $X,XXX XQ compared includes 'XX to Bitcoin was XQ metric per 'XX. mined

GAAP unlike programs approximately $X.X SG&A totaled a due related increase in $XX.X a from an in financials, quarter-over-quarter 'XX. our stable due demand reminder, achieving the million. million milestone. expected 'XX.Operating be proceeds operating million was $X.X compensation reduction increase expenses non-cash As quarter-over-quarter to $X.X The stock party primarily remain of These response a monthly and company received for in records proceeds as cost received revenue. to our reports, XQ to in XQ in at increased million in expenses performance 'XX XQ for

we million $X can savings year-over-year, to track drive on down I'm to are of continue We and confident approximately costs. SG&A achieve

to are We XXXX. $XX million to of savings achieving committed relative

XQ related quarter in objective debt was expense service saving in move the the increased We an the miners plant, middle steadfast of capacity modestly 'XX and loss equipment financing. Lake issuance million remain and of was disposals disposal a includes initiatives interest XQ mining property, and our Mariner. $X.X to XQ increase as costs XQ over The million 'XX, infrastructure expense result in related have these $XX.X to in loan and we and to which of quarter-over-quarter of recorded amortization a in million, placed of increase number from term GAAP $X.X 'XX. quarter $X.X 'XX. into in debt at million interest underway, cash into we discount 'XX to XQ on XXXX.Depreciation of savings of cost In achieve

of made investee, of reported payments income in paid to interest May equity in or amounts monthly of includes $X.X share million XXXX 'XX. due the paid as interest interest 'XX, we of compared cash income net during interest venture. net and of XXXX, cash million during payments months year-to-date XXXX actually to and paid months However, $X.X X period of X-month of XXXX, interest million and interest Notably, was fourth ended January $XX.X X respectively. September in for paid accrued quarter represent the the is losses XQ as tax, XX months Nautilus joint and X These XX, of XQ XXXX.In negative as million in proportional arrears in TeraWulf's $X.X the

Our loss XQ quarter GAAP net compared third $XX.X for a was million 'XX. the million in to loss $XX.X net of

over million, now Our sheet. EBITDA 'XX was million.Turning XQ improvement XXXX non-GAAP year-to-date our the adjusted And $X an for in 'XX. million $X.X adjusted attention EBITDA XQ is $XX.X balance XX.X% to

we of amounting assets $X.X total with total held million. million $XXX As of million September in $XXX cash XX, and liabilities to

With capacity megawatts targeted $XX at exiting we of will which in substantial from portion normalize the quarter.As of in approximately one and a operational do our note of and have monetize $XX costs. XX, that Bitcoin September expenses we XQ from previous whereby our 'XX, moving pay half our I've negative improvement rapid not debt operating to million and our XXX of mine exahash as rather to we Furthermore, current the XX, rather excluding X.X strategy balance we working approximately XXXX December but and to you mentioned net long-term shareholders the a capital long-term sheet reduced consistent achievement negative year-to-date and reduction debt may a our overhead forward. quarters, in capital anticipate hold we expenses than fund these liquidate continue fourth dilute what treasury as execute to in needed Bitcoin million

the in I shareholders in with debt a Street efficiently share simple miner, our million Wall continue ATM can more in and peer and shareholders of always money. not dividends organic return in or find ETFs will mine XXXX, by to than they strategy return not in likely of interest gold, management current a shares represents of during sectors, Board to form Bitcoin masses call speculate pay be questions. available prices mine while it debt, the and the to doesn't to more with accretive the and we any profit pay XX% insider stock no growth, and share commodity by Bitcoin efficiently and be will one, price commentary aligned is transparency to forward coal, our similar Wulf debt monetize buybacks, gas, oil, best dilution to profitably XX-year teams in to the or thereby as with repay business providing have what clear these and commodity today, a the return were to mines shareholders peers and than the further profits, sell material to form we Our job, in that and and will any of that simple; back mine I to Bitcoin think in with because Wulf hodling. I'll dividends price to soon and future.With company, your or as the a veteran to to as ploy institutional of and and pass and the value energy prioritizing issued and answering growth, because objectives profit the recommendation and that Partnership gamble the Master in that, long-time antiquated operating the million, for down, since profitably Board, access an it the our growth be number providing at our peers down, hodling.As that organic roughly Paul higher exposure My accountability.With or investors our XX, believe MLP management, industry.Lastly, allowing the investor and X.X to energy, shareholders' buybacks, financial we company's Limited be look equity only think market to of shareholders' Investors interest. What the to copper, marketing profits not maximize two, own number for made levels.In model to net And mining insiders and Paul's HODL conclusion, of September of commodity world XX% regard strategy power, and Bitcoin we value on should HODL via they're owning company, fair dividends, distribute do proceeds Bitcoin, not ownership this equity. hope $X.X

Paul Prager

to the future.Before remarks, approximately as are updates communicated pre-cash today's quarter, and I our discussed our the growth generated we cash of balance the certainly additional executing valuation, operational debt we've go in Patrick. have we we reduced look To what in summarize hand to context remain million, hand. is they the current I have market. sheet the strength Thanks, address business expectations. of confident the today, want prospects, in believe on to objectives and We our we flow conclude to which I flow With $XXX forward sharing and believe in third in the manageable we our

to their X.X%. to principle, premium of TeraWulf.X, the of the entirely you, co-founder, the following, to and yield own are and our and comfortable close in debt, are uncertain operating our index with is constructive, shareholder, of stake.X, the to of a me cash a team of priced for your the I share own highly $XX in a years, ownership senior put difficulties, we assuming April by to the share million to portion the equity the in no and see currently be given a to an at term fellow as reduction trading context, equity given of To of lender attractively sweep credit bond to relative of has agreed will out amortization cycles by seeking lenders to we considering enable a until has peers, expect debt and to of And the are terms We the collaborative entirely. principal modify to has provides success, end to price diluted of coming constructive around regard see meaningful lender assuming company's perform, be achieve am demonstrated a secured if XXXX. and past our liquidity $XX supportive to more no flexibility. the in studying With our business XXXX.X, liquidity credit our network to by mandatory to sizable of incentivized are also agreement increase through million high and these to I $XX group with more the lenders and likely alongside loan to loan proven quarter that a April options have company.My convert lenders to managed incremental $XX,XXX, group TeraWulf consider an we the and believe believe In collective the last executive provide power portion price. first until current company's at Khan, the my X, price is several continue, Nazar possibility incentivized I closer our of should debt. the incremental and fully the million their the price of seasoned over agreeing own and quarter this XXXX.We paydown multiple XX of first consistently of a particularly expect equity XX.X%, continuously position this a fortunate Bitcoin have investors regard stock has the to paydown perform reiterate, leverage, material frustrates waiver the to current significant efforts debt, $XX investors, the COO XX% they undervalued are April.To having $XX,XXX our having equity support our price relative of by of from and a several we our valuation, I terms, free company by interest flexibility.X, discount.As Bitcoin would million maturity and amendments XXXX, principal of likely at incremental well I a end flow

your flow.In build sustainable discount as our thank private I your de-lever. narrow and trust as remain I'm invaluable company.With that, to In we M&A. However, valuation open focused on reduces over leading continue your I public evaluating I cost Bitcoin mining our for time the increases personally growing questions. free accretively, believe call will Accretive and a and Operator? for perform and the including support Bitcoin we company and want the mine our we the you cash to closing, meantime, to prepared investment believe to will growth

Operator

first Josh [Operator from Cantor Our the Instructions] comes question with line of Siegler Fitzgerald.

Joshua Siegler

like I first I'd economics understand agreement. unit of all, guess, this to of better the host-owned

I cost on power $X.XX. believe So that mentioned the remarks, be flow-through? it Does prepared you a include would

Patrick Fleury

Josh, got management me and it's No. the whole here with well. Patrick, I team as

all that's in. So

then, So our fixed. at power it's as And Mariner cost effectively floats. you Lake know,

works. And so, that

Joshua Siegler

rigs, Okay. then, And Understood kind X,XXX the given 'XX, thinking was the about addition cash as in to these of as purchase curious if you any we're or on potential pay-down, of before half to front. when back that the well to really expect flow-sweep, I the free so. option debt purchase

Patrick Fleury

trying what, So time time on message focused we're of undervalued again, accretive and we're vis-a-vis is kind growth. And we think to as I there on Josh, think harped we've peers. the we're

of valuation so accretion, where at you And And it's $X guess can sub-$X. not here think see to at I might is metrics we you various I indicating right? or see we're look what kind and

think market of unfolds to any could here, we XXXXs option the time, add add X those if in. as at it's machine think the in have machines could And I we we machines. accretive, so or add we And point

forward, think valuation. what we'll market the as with And and see happens so move we kind happens I what our with of

Joshua Siegler

could in as curious And real front. cost head here? on an that at speak you Lake update understand I into of the we months how us about if could I I give the more the if just site thinking fast. you're was power Okay. one Mariner winter

Patrick Fleury

fixed Nautilus. our X obviously at think I Look, years at for has Mariner then and been Yes. $X.XXX Lake $X.XX guidance rate

in below in demand financials, in monthly our of are as you probably reduction see operating response trending versus Lake Josh, we do the of seen think and say at cost revenue. proceeds XX-Q $X.XXX would can figures. GAAP you've think, our I And disclose results GAAP I reports our the our I Mariner. It's we in also, a

I account in below So when into speaking take power demand think generally those plus price that our response revenues, coming I you we're $X.XXX. think realized

Operator

of Our White Chase next question with comes Compass Point. from the line

Chase White

between have just expansion Lake XQ much Mariner on have of And do XQ? the I a infrastructure? follow-up. expect And how you guys left in you do to that So CapEx how split the then and terms be

Patrick Fleury

remaining Chase deferred into the minor really at -- so an Lake from purchase, It's like said very minimal perspective. we I this Mariner say Yes, on infrastructure point XXXX. is would just which

Chase White

decision? where expansion And helpful. Got potential timeframe issue? you. on And there megawatt stand on your JV any updates the making the XX any Is on partner That's does internal Nautilus? for that

Patrick Fleury

Yes.

I'm if you in looking management nothing don't I general, think I just around here to to the But want Nazar, team to Nazar wants know, seeing add So today. comment. and of if as that.

Nazar Khan

Nazar it's correct. Chase, That's here.

There will As we a for site. that. haven't now, XX megawatt expansion out the at of a schedule be built

So in board Mariner more the in XX megawatt we next lot the May we We Lake term, to Building a the or site year. well, deliver up is of Building could expand. as which on building. a X at which drawing is April X, see put opportunity near

be will So beyond X, another expansion to Nautilus. at the before Building add Mariner Lake that facility the likely extent we it

Operator

of Our next the with Pipes Riley comes B. Lucas on question line Securities.

Lucas Pipes

comments the debt-to-equity is Good the remarks job. on my prepared with Paul, question your and exchange. first

some catch them. mentioned there. all You I couldn't details of

be could just back premium. you could mentioned also a much how go and You quantify and I maybe that revisit maybe exchanged. potential wondered if

Paul Prager

Nazar So, I would debt. guess, million $XX of and worth I own, around the

would think But don't we have meaningful price, But to to are that. in the also that we it'd would negotiate, We has Board that and it the into for to and meaning a from further want convert debt that invested to do lenders right we'd think market premium that something notion exploring from so us could a a I undervalued. at do we the current the to expect approval think trade of lot that's lenders seeking I in premium. to we like of very so our waiver come our the shareholders. context being get other a at the we're be at and alongside to market, that comfortable in come stock our equity. I is

Lucas Pipes

very earlier. infrastructure That's the second the Paul. little for helpful. or corner, miners? you, around Thank Is that. Is My a M&A on I to industry. kind go choose more would with bit there you preference one question over a wonder, it of your equal? mentioned halving is thoughts you If you which neither? long appreciate other, or one I'd had on the the

Patrick Fleury

And Lucas, -- quickly. it's with has think not created been the a we've then I around that I'll think room this, on here, all know public but I Nazar Patrick. pretty view our looking I view strong that Yes, answer is exahash equal.

at And as economic you when look very here. our power input have we you low the is unit know, structure, And cost #X so power.

want Nazar, than low that. power, have that's sites exahash accretively, or have terrific economic organically so term, because it growing our being we cost. lot on said, more cost for we either come know you if to that, And existing that right the growing power us into halving just buying us, add as at unit costs inorganically, low when our attractive we very doesn't That where per to double.And a is particularly to lowers

Nazar Khan

at costs at are looking we comments, consolidation, To on we we cost and the key. activity here. or on the focused very M&A And same is lower. Patrick's at echo infrastructure direct have as that structure Nazar infrastructure that Lucas, look is

direct can a And site that Patrick And it's At us. of so not that to of we the XXX to costs, capacity. believe up grow. said, to we time Mariner, over total like think get extent interest would as megawatts can our mining it we organically dilute site

type it's at site, M&A consolidation any activity. kind And in analyzing benchmark of of our that's that or so

Patrick Fleury

site, to I in as with not I is you've but Lucas, I south are the going air mining competitors A are Niagara that, would miles Paul blessed lot we're but think our temperate XX,XX Falls. Yes, of know, you there add those in of been too, mining but only And conditions. based to cooled just we temperate there. too, immersion think conditions. We're We're of the because not. not with east jump

So there's year far proving in that cheap a think our I thus are lot power. excess And that. you of abundant results can see this

Paul Prager

is, only not I'd is the to where to had that The the earlier, you coming, want end winter is source asked of at but it's Josh, add power, thing the for user. winter coming the given place generation we're

facility is north. located up very our So well

activity other to element an everything is, has be focused I on which correct. of think mining. The zero we're strategic environmentally important thing mindful We're to do, we is Bitcoin carbon

in us with So the goal. zero growing extent interested consistent of one mining. should keep Bitcoin who's the are we're we're we're be everybody And assume that to growing, that focus also, going to acquiring that things

because approved a this come institutions not who you see institutions it's and invest is is a in. big binary think of more this the to if important are more space, when and focus I ETFs determination can they for the

but has we're it perspective. Bitcoin mining to as built how look And which exahash, focused of an company, we a could be with consistent a is from so much acquisition from opportunities on zero at carbon very

Lucas Pipes

share helpful. very squeeze here. could additional That's little out I'll a you savings And try cost wondered where you mentioned of one squeeze I bit last looking to opportunities, savings you're maybe and in. additional Patrick, to if one

Patrick Fleury

down even to another to that's to But our I year, what that able in that last of of I fruit officers' to details in that was in mean, covered. give going reduce the renews $X we And we're policy and of specific And first industry this example won't maturing. into material Lucas. low-hanging get directors' an really $X our example, million. December. insurance you reduction But were And year, premium. that. an an I'll over million around is this year Yes. $X get million

those that's So still you're transactions. other of have there's out more a the like those matures in sorry, in costs. right, grapes. that because track looked And like think, experience we past, obviously things And today, public of we've record, of I December.The where, the amendments it's more on. looked also numbers sort are, And some at, as examples is company renews, to focused we're juice the candidly there's we've and seeing lot what whether I those thing again, at said, there's not strategic or of squeeze debt

Our And get filings are fees I of SEC just as are our on to mean, things. experience existing with out experience more have. squeeze getting that teams we're legs just third-party and operating, then like more folks our the able us we we again, And definitely decreasing. kind comes other efficiencies. on sea that, of more also legal things operating getting workforce

all really which big to which I So that to D&O, like can like, I the why going a future example, allow of keep but see us is there's said think ticket is in items, are confident, my the things, that good I'm in and it's those cutting remarks. pretty some costs I that

Operator

Our the with Mike next Securities. comes Northland of from line question Grondahl

Mike Grondahl

XQ for out especially XQ in like operations and of my a on takeaway One, to the the back at Nautilus Patrick, Was to was levels. revert anything was Lake quarter. And then closer SG&A and clean pretty operationally? interest Mariner sounds expense secondly, questions. it kind it call Two that there

comment helpful. Just a bit Any be cleaner little directional those were would quarters. that on

Patrick Fleury

Mike. sure, Yes,

looking an outage. We So think Nazar. have the at clean. pretty quarter did was I'm I

something. we were an down, had October, -- Okay then outage lightning in had fourth in we that's think I well, and for strike or a we but August, that quarter was

Nazar Khan

scheduled Mike, was We so point, clean outages occurred. a fairly to your Yes, quarter. a did have couple operationally it that

we the of up do and ready, the was site. build to work that had to continued to site tie that site we some to getting the X in there Building As rest

and was quarter. vastly with there to clean that hours. that issue August fairly But we outages the an in outage X. So was but operational there in down the Patrick was due Again, said, was it only was a or that quarter, Building were lightning in few time as overall, scheduled an a strike, was the mostly

Patrick Fleury

point, stock-based so in at look your financials, on take out SG&A Mike, and I comp. our I Yes, SG&A

very little stake, but is a really big the bit in so know, a don't there management we much there. you has As have here stock-based team comp,

I I XQ, quarter. should be triggered, lot other lowest I if higher out quarters that in stock-based comp but all that XQ, XQ, know, and closer $X.X a XX-K, stock-based XQ think, There's in proxy think for to I the closer first the one think I kind take work. performance XX-Q to and of be there, we have take quarter we million. first just million, it's to $X.X of incentive out because to file things was yes, our So tends comp, was did obviously, have a of because as SG&A, renew, work, filings in if you

that's So yes, kind of extrapolate appropriate. you that if out think trend, I I think

Paul Prager

comment other a we're that space. mention operate think little We I one facilities, the other recall want a of just mining in we're integrated. to vertically relative the terms our to the own please Mike, in lot bit operations, of I folks unique so

Operator

Fitzgerald. Cantor Josh line of the next with comes question Siegler Our from

Joshua Siegler

down of how SXXs could saw I potential fast, that a if the queue kind put I that wondering real versus on and you're future. Just you you was us about through the rationale walk SXXs the thinking in deposit XPs? for XXj your

Nazar Khan

Nazar here. it's Josh,

So out the lower price had better that out low machine, -- came put Bitmain the there. efficiency out SXXs gate

a kind so there I earlier infrastructure. around of -- think this just versus miners I And the from think was question Lucas

power think miners ability it when think And we so available. the about and the infrastructure term are particularly is for to procure unique, we low-cost

again, there efficient more SXXs that comes out XX before today, year to structure what from machine another out. be that the going out, the out. that XX% So the Inevitably, the remaining we and payable there's probably months XX% is, rolled see under delivery, Bitmain is today,

the our And fleet joules per efficiency so, our fully XX.X Once is to we overall that goal and drive incorporate the terahash. we'll fleet XX,XXX current pretty is low trend XPs, close per continue terahash. to full to XX joules And into j long-term efficiency XXs. be

types those to incremental of be drive further And kind of at SXXs, machines we'd efficiency. mean that, so that will looking that down GXXs, the

Patrick Fleury

Yes, Patrick. guess, and Josh I -- it's

of that way I think it million of the the right on deposits So that, think is touch XPs. on SXXj to we the we've about aspect just made I to financial about think $XX.X got

so about jXP with all deposits that's order. on of So We'll -- the we'll we the the made roll that $XX.X that, million that $X.X roll along into all the into SXXs, -- into million. that

to that so we'll right, question? converts is time of remainder, sense? under which kind And XX,XXX Does when difference, will, that Does all. is your you $XX some terahash. or then, make that the if of machines, XXXX. And answer the just at So a know, we'll host you roughly, XX,XXX the buy the in

Joshua Siegler

very candor. Yes, that's appreciate I helpful. the

Operator

with of in Our line comes next the Levy question Parabolic Ventures. Mateo

Mateo Levy

X.X. of all, relates is are misunderstandings, meanwhile, the Because as aware question other not your the you who's are my expansion What on congratulations amazing. another do you, wrong? and I the all as just miner hashrate intend First achieved that. want to interest to how prove them Meanwhile, missing? that short of But applaud to so What has short market metrics quickly the to looking interest. I'm grown. your

So I this. you would love to get some on from feedback

Paul Prager

but Paul. long Mateo, outperform interest position close in Part way, our they part appear I the remain, I be short of the supportive don't willing that think this its short to to and and been by entirely space, even lenders. have XX%, think, the peers. And would is the again, to the company some of help stock continue to of it's

shorts, debt. think I part the the is, they think I understand other of don't it

cash we've internally. have flows, appreciate once have which clearly the that debt we until be and it able we we're down And to and we a April. as when loan, scale built then amount, the certain that our don't So flow that, they to duration they could appreciate paid look don't here do facilities cash the pretty of do to going free at rapidly well a for and get

looking right little a handed just and they're short heavy stock. think I a being So primary the in and issue now maturity debt at they're as

continued move I've earlier, is which I'm they're at our my making into And to throughout. stock market. a I've senior current indicated again, its to think premium debt, the wrong to the as I approval purchase prepared bet. secured position, lenders with

mean, some in focus shorts.I on really stock So point, I invested to don't CEO, those I squeeze to if supposed as provides know think it great the for a I'm opportunity the at with trades. with and out play see that how that stock think, prices levered there we're most But it's ETF our out approval, thin the I up you'll going there. I pretty think Bitcoin

that on costs I think the generate particularly Bitcoin, of lots strategy ESG companies reduced HODL companies a as mine will that of with lot out folks roll at of into the top. and component are opposed sort to of

they're think I wrong. So

I intend prove think we job them do. our and it's wrong to that's what to

Mateo Levy

makes I that the a cost and low producer. Paul of sense. scale is you mean, how quickly debt you're function the so

halving, the So going that resonate. into should

exclamation take is any space? leader actions that behind an to in the really as TeraWulf intends other the to company So there a point put

Paul Prager

at Listen, we're the in all toolkit. looking everything, tools the

focus. a the think hosting X paying are is to, and we acquisition of and for as whenever with for talk we with relationship to machines and all debt, Bitmain We we're do opposed some. consistent structured Patrick up there we of optimize agreements Building Building the X shareholders, are already to lenders here, way there. working time, our want core at best sort our about terms that think got to our opportunities strategic a And the new If some fast. real as ESG the to on we that. in we in we'll ways are I So of our routinely. scaling has very pay that great our -- separately, opportunistically we're company interest look We've now, got right

the is currently, on out months maturity, we're debt So I X of the stands, think flow X there free we'll it are [ too sweep confidence there. just think past have which I And lot then. as shorts cash the till in And again, or halving. get it's I ] a approach. focused the months,

I So shape. think good pretty we're

Operator

today's We question-and-answer the conclude will end And that, with of reached have session. this our teleconference.

this You lines at may Thank you time. disconnect for your your participation.

TeraWulf (WULF) 13 Nov 232023 Q3 Earnings call transcript