WULF - Earnings call transcript Q4 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

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

Assad, you may begin.

Jason Assad

operator. you, Thank welcome and earnings call. Good to afternoon, TeraWulf's Chief me Officer, Prager; Paul are Patrick and today Chairman Executive and Officer, With Fleury. our Chief Financial

may call, that and statements the anticipated actual contain believe, statements forward-looking to Before materially. to forward-looking prepared uncertainties, Investors this subject call. differ and get to results TeraWulf started, as and words in statements. estimate, These make like anticipate, statements actual from that Q&A cause time. this and at remind we risks additional relate session intend, potential, may forward-looking the I'd similar involve to differ risks subject materially remarks the could, risks used expect, and TeraWulf they statements, by project forward-looking forward-looking cautioned enable, are and everyone may results such will, those we uncertainties, which during uncertainties should, are are When to are may expressions our of which

risks at the viewed U.S. website In addition, Exchange our with public the section be and may of are TeraWulf's in other terawulf.com. Investors which corporate Commission, and Securities filings in sec.gov at described fully more

financial today's non-GAAP measures. performance refer and measures to company's these call, that certain most non-GAAP on to measures. our GAAP financial and XX-Q note please reports on Finally, full a Please of reconciliation on our to XX-K refer we'll periodic Form website comparable for the

today's to begin call remarks Paul proceed Q&A. will We we'll prepared Patrick, from and with then

the to Paul? call TeraWulf's over CEO, Now Prager. it's my to Paul turn pleasure

Paul Prager

our by these attendance our for but has share fourth only TeraWulf, This enhanced your I'm significant showcasing We with We've several liquidity. XXXX past organic repayment you. not and excited marked surpassed and strategic met discuss year and to at accomplishments and existing quarter we sites, objectives, debt growth substantial rapid achievements growth financial Thank good year you, Jason, everyone. as results. appreciate afternoon, and been full today

in two entirely Lake Bitcoin zero specializes our Pennsylvania, Talen energy. Cryptomine energy venture by at carbon New our and TeraWulf operated powered and grid facility carbon mining, Nautilus York, XX% Mariner the resources Upstate centers, with joint data owned a Firstly, facility in top-tier nuclear in zero power leveraging wholly sourcing

the difficulty, facilities As a representing miners more of like mined alone, combined put a end we February, challenges fourth by network threefold to industrial year. deployed Bitcoin I'd quarter these in to produced during two XX,XXX context. of than of posed a X hash achieved rate throughout contributing second, XXXX. moment last per take by increase Bitcoin mining X,XXX self-mining exahash of Despite record from the approximately figures to high XXX facilitated a total these

peer our produced as value ] quarter, $XX.X adjusted at Xx. We and trading are that measure Utilizing are high as [ adjusted with an million our multiples XXX of over consensus During current and some progress Xx. enterprise an of we we XXx estimates annual as of group EBITDA $XX.X a Bloomberg competitors of market comparison, at suggest multiple value EBITDA bitcoin, total of of an million. million This resulting XXXX approximately the $XXX fourth would in for million. $XX value time. important trading our serves average In a of recognize of

significance This approach event. profitability significant advantages. having control, also and as of overstated. be Scalability at With the delivering our access assumes unwavering importance unparalleled infrastructure on and the but steadfast to we operations It empowers expand confers stability rate. cannot scalability It our Our forms very the heightened of our not long-term growth operational efficiency, hash facilities, only in low-cost profitability. ensures commitment optimize consistently existing lies us in cost strategically strategic power enhance to bedrock exponential focus approach. zero-carbon impending

This miners. to committed expand a of deployed of result the to current capacity by are XXX megawatts exahash XXXX. to generation XXXX. approximately assuming operation plans of will infrastructure achieving infrastructure further the by And in expansion XXX-megawatt with end in We XX

actively to and in proprietary compute mining optimize end, addition are of established Bitcoin additional [ our XXXX, digital extensive To extensive focusing options utilization exploring we our and research, hub on the unlock infrastructure. value. internal our in we to infrastructure Additionally, as ] scalable this Wulf to development innovation deploying

past collectively In to the alone, facilities, efficient these loading XX these cater contiguous all of TeraWulf company's large suitable spent over X by revenue sustainable Mariner, is impressive to ancillary involving over took X-megawatt power multiple successful XXX step Microsoft, applications. We in several run Meta, a must megawatts access of to These manner system infrastructure the uniquely offer the each. pilot Lake provide part megawatts dedicating at generative computing infrastructure to enhance and compact centers, streams. Investments available most and of data from to to and of and capable phase block the positioned extensive high-performance adhere megawatts our broader Mariner necessitates and prominent center $XXX years. requirements. Google to exceeding must hundred is framework. sustain critically, cloud of to NVIDIA as a Amazon, strategically ESG such banks, center at positioned for experienced diversification facility. hyperscalers, growth, a average access Following a zones to of This initiative in GPU With language Oracle XX constructing data also initial have entities to land to requirements. specifications locations water power annual serves demanding allocation data AI The ranging a buildings, fulfill accommodating model parking XX% Lake direct billion. sites XXXX hyperscalers buildings

coupled infrastructure mining invaluable and in access infrastructure this the with enabling zero demand carbon, energy bitcoin scale large role growing is applications. power of Our meeting low-cost demand pivotal our phase AI growth. from to for

and low-cost resilient profits, to to debt our our now financial leverage maximize shareholders. steadfast remain our infrastructure to repay in Turning to value position. We strategy return

TeraWulf's mining companies highlights cost at quarter fourth having our profitability. other among We having. the $XX,XXX per achievement bitcoin industry-leading listed the to that of the mine compared estimate after approximately in consistent $XX,XXX and lowest publicly to bitcoin before the Bitcoin is a performance Our

As further a only position in time, will to of the having underscoring producer the cash model. We've the first of projected the our and flow We strides as the with repaid bringing value free end sustainable cost four $XX and liquidity strengthened last in liquidity. also balance almost be million, substantial we anticipate debt of $XX our million at for that our million February, integrated Bitcoin the as months, $XXX month's business of quarter. made approaches in principal significant and lowest debt repayment of vertically

navigate price liquidity and were repayment. in essential average a a for discernibly having $XX directed impact. April We which XXXX, ability proceeds, as the balance further debt at share, expenditures $X.XX bring have roughly The surplus prudent on a funds paydown voluntary additional exercised in fiscal in million. Allow approximately ATM anticipated million Throughout even management with minor $XX strategically the to $XX towards to the facility, accretive reduce selling million with to me infrastructure million the debt dilution. address an year From the an of few $XX will our to the shares capital we debt an of that of remaining million balance per resulting sheet of XX our weeks. retained matter early was approximately used

allocated cognizant these While dilution, accretive you concerns and and I of and shareholder, you surrounding funds. substantial am fully fiduciary as my the leading of of I impact responsibilities out the consider urge both a to significant to

Looking forward, we have sourcing far in capital, more current our given generation. flexibility flow cash

produced XXX significant. Bitcoin, with line. we of million to at providing value instance, $XX,XXX approximately bitcoin the February, $X.X cost average of That's For in directly an flowing total $XX.X bottom million for

its we debt nearly our strongest of than placing approximately $XX the will year, April, at expect company the of net position ever. As at the XX% lower beginning stand million, in

take Finally, the to thank our is which the incredible that to I've in today. their dedication, highlighted success, milestones achieving effort a such I'd and lead team to group TeraWulf for hard outstanding work, drives innovation professionals. at proud your I'm been critical like an and It of have moment

hand review. detailed to I'll over a Fleury, financial for Patrick call Now our the CFO,

Patrick Fleury

Thank you, Paul.

paid balance. X $XX Number upcoming million During quarter one, remove flow achieve [ amended three, X the to Number our into the [indiscernible] two, free Number Number commence million six company from four, it Mariner. to rapidly positive cash $XX and at ] of over And principal Nautilus. over flows cash XXXX the sweep operations. steps XXXX, mining commenced notable with operations having. position several reduce navigate accomplished the debt of to its debt company the Buildings mining utilize we at at first liquidity operations Lake and and to of continuing amortization and debt

results focus fiscal year-end rate XXXX given for in of X.X on comparisons, less year-over-year operations financial the run remarks exahash my While targeted results would are typically annual only middle we solely relevant of And our third remarks, will and recently references achieved in to XXXX March guidance comparisons. our XXXX can addition on in results focus be press found fourth my therefore, versus All in quarter quarter XXXX. I my to X, year-over-year release. in remarks, year

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

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

Bitcoin XXX per bitcoin the XXXX. about or Bitcoin For quarter mined X% or total over in a XXX third decline XX.X a of day

total net from X,XXX For at Bitcoin X,XXX X,XXX Nautilus Bitcoin we mined share fiscal was XXXX, Lake inclusive and of for hosting received of profit Bitcoin a our year mined Bitcoin, of Mariner at share. Bitcoin

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

value a averaged includes self defined releases. our total of non-GAAP at in $XX.X Our operating bitcoin reports quarter, metric bitcoin mined Nautilus, detailed per a per and for $XX,XXX million that mine this and as Bitcoin press monthly

increased million $XX XXXX XXXX. to XXX% from GAAP in year-over-year million Our $XX in revenues

'XX to Looking profit. XQ now million quarter-over-quarter saw We at $XX.X in in XX% 'XX. million XQ an from our of $XX.X increase gross

'XX. per to includes XQ ] the cost power ] XXXX in 'XX XQ $XX.X total [ $X that [ in with in XXXX. million year Bitcoin to Bitcoin million X,XXX a for compared non-GAAP from Nautilus, mined, mined Our at profit XX,XXX increased Gross in metric

'XX XQ in as programs expected a for response $X.X company unlike reduction in received to and totaled operating demand cost $X million our proceeds reminder, monthly in revenue. received a proceeds our GAAP in reports, and These records the financials, As of million XXXX. be

As XXXX. ] of demand impact kilowatt expect disclosed in average we power achieve XXXX cost, [ to an of guidance, per and hour Nautilus' $X.XXX in the power our revenues contract including response $X.XX

For 'XX. million slightly in and $X.X to annual also from repair expenses achieved and operating average we $X.X in [ due increases cost were as XXXX, increased increased to $X.X costs costs million ] quarterly 'XX XXXX in in These million scaled year-over-year $X.X Lake Mariner. an staffing hour. Operating per XQ from in XXXX. slightly operations quarter-over-quarter million kilowatt at property power increases we insurance $X.XXX to of expenses XQ Annual

total XX% our SG&A to in incurred million quarter-over-quarter from approximately XQ includes anticipated $X.X operating at Nautilus. Lake and of operating in decreased $XX.X in expect 'XX. As XQ 'XX we XXXX which the expenses at to disclosed for be at million Mariner million XXXX, Nautilus. XX% expected Of in is expenses expenses million XXXX $XX.X $XX.X guidance,

million increased $XX period, from year-over-year expenses SG&A million. For to the slightly $XX

increase compensation increase achieving However, Adjusting one, for due in XX% to comp. and year-over-year for from items, to noncash this performance party $XX.X in was milestone; increase two, SG&A primarily number an XXXX million in decreased a due these stock million $XX.X related an stock-based in number XXXX.

$X.X XQ from remained was approximately XXXX, 'XX. in in $XX.X Year-over-year Mariner. which in and disclosed increased result $XX.X in service capacity and of XXXX. Depreciation depreciation of XXXX the in $X.X placed 'XX in $X.X into our increase million million at anticipate million mining stable SG&A infrastructure XXXX in at materially million to an million in we quarter-over-quarter XQ XXXX As guidance, Lake

to year of disposal equipment 'XX plant Mariner. GAAP a XXXX interest recorded to on of fiscal expense we of respectively, property, includes and and XXXX, disposals debt financing. million, $X.X Lake in $X.X loan of related million term which related During and $XX.X million miners debt discount at XQ the cash expense issuance interest and was costs and amortization loss

XX payments reported $X.X due $X.X and during and and in $XX.X net paid fourth interest [ January as accrued X in actually million made paid the paid Notably, as the during is of years interest monthly investee payments $X ended paid XXXX. In respectively. period months XX-month May months XXXX December XX and of was XXXX months interest as quarter for 'XX, interest of million cash in However, we the ] includes XX XX, cash XXXX, XXXX of to of interest million to of in income 'XX. XQ compared equity net in XQ interest million, tax

full losses TeraWulf's the investee $XX.X amounts These compared share million the of XXXX. net $X.X as income a tax in XXXX, of year in For to we joint Nautilus reported of million represent a of venture. equity or loss proportional loss

respectively, losses $XX.X to amounts Nautilus value to the to include these from million, XXXX million were distribution from the the the the miners date on marked distributed. of For miners fair $XX.X years, XXXX company, related book value and impairment and fiscal of whereby

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

Our XXXX XXXX. in million $XX.X million for of a net GAAP loss loss compared $XX.X was to net

EBITDA XX% adjusted million. was non-GAAP EBITDA adjusted in XQ and 'XX for $X improvement million $XX.X over XXXX million, $XX.X Our XQ was an 'XX

Turning balance our sheet. attention now to the

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

excluding with XXX from in anticipated million $XX of operating week exahash of 'XX, XX, positive capital, debt debt we a With the approximate December megawatts the XXXX, first in capacity consistent rapid current net fiscal of $XX million and and of we XXXX. recent long-term reduction April. in first an million $XX our long-term payment anticipate reduced working Furthermore, achievement X the quarter our December at negative year portion as targeted XXXX, our approximately of to XX,

shareholders what from mentioned whereby our in strategy, Bitcoin that and note and overhead and to rather expenses sheet liquidate we expenses quarters, as not do balance we previous but hold execute As Bitcoin I've monetize treasury, you our may we in debt operational pay mine capital dilute mine our profit most profitably than and than shareholders more to organic future peers with that dividends and rather growth the to needed in return share these to We potential efficiently of the intent of costs. paydown, Bitcoin and buybacks. fund form

and cost guidance and provide marginal transparency shareholders producers business lowest in as We our are commodity among the cost the reputable industry leading and full to any does.

investor and I the investors that cost industry their public knowing lack their that adequately logically sentiment. myself, One impact the believe fact of a only is institutional insult may presume materially of analysts. by an certain is and disclosed As that former self-declared do simple investor our largest peers, Bitcoin transparency design, is to research companies not figures mining can leaders

all confident of table was upon long exahash of having April lay and all I'm guard the not being a our see, changing hand about fast to With reported. having that the that very we holding. second likely XXXX on quarter post approaching us results anticipate earnings the cards to and and We've in suggested is all for TeraWulf the equal

of to As marginal and XXXX shareholders achieve I'll in includes today, post maximize while and disclosed that, financial through Paul were back simple: questions. the and per approximately single call and it objectives access accountability. With transparency which having. In guidance, made your to this our look answering of reiterated investors value repay hope forward a debt conclusion, profits, during to return production, cost I expect that and to we clear providing pass our in $XX,XXX every company cost bitcoin

Operator

Securities. line Grondahl Our Northland with Instructions] first comes question Mike the of [Operator from

Mike Grondahl

the relates the one, two that interest as out what going you market what's it the And how value? And harness them there. Two of kind questions. assets for the initiative, kind line assets? you upfront. ask on your any do as value elevated related to HPC the stock? are to have secondly, But most the of I'll to first to both time guys And short you're thoughts those the that, that then in value of

Patrick Fleury

at sorry and over lot today. got So conferences management we've a going country for a -- the different all team the on

regard I'll and Paul, HPC Mike, free and but scale So I with and in. look, to jump to AI, size economies scale of start, feel think matter. But

left that very megawatts. United so the sites over And few States in XX there's have

We to that hundreds pull Mariner, used XXX also of have of access of gallons have land, at Lake but plant largely megawatts lake. thousands at and of and cheap coal water. and a abundant Remember, carbon retired site power from the we're water to zero the

And our being value what the those very to for to just of site. items positions their think check it and talent they all I creation, you rare, so box and at on realized is able partner similar

you anything So I'll pause want to to there. that? Paul, do add

Paul Prager

No, into ESG is I got think you to would want how important these underscore hyperscalers. I it.

of So to focus land, critical green and power, that power cost is fundamentally these guys.

active. is some their other here currently well. the I the that for quickly are or one their years maybe in element very immediacy of than competitors connections of could availability think development, they And to think the think our already how a earlier them compelling sites for I I get as proximity is hyperscaler so looking

Patrick Fleury

not address lost Mike, see then, question, reports just weekly. to on us. second And your short it's I

and amount, is probably common And to I think, what shares we million would insiders. have, ] so Of XXX and around sold outstanding. we I why And is ownership, the you an have among about Bitcoin give management, the as shares largest we million idea, have which XX insider to deem XXX know, careful that by short just So among speaking, just the we're miners today. held all [ prudent with XXX ATM. insiders you broadly

actually see because short, I percent short stock. on the But see you're can with can't that, -- out one of about example, by name And the float to the of that actual that. XX% can that's XX there XX-plus So $XX is reports mean say close don't million short talking I for I fund see I shares million.

valued to I make And so I I that's that a think we're matter 'XXs will and really change as to position and none valuation seen the opposed any the I just I've profitability you, power on tell in previously, that the in and of space the mean exahash revenue where about in telecom in to I which ended been because in think have well. sense said, me. these think on and can I crazy companies like XXXXs profitability doesn't guard based

So think our interest or that I that A will focused the XX I the around, don't million, remaining, we're lot it's actually, short of know, first lender and group they it itself company. something quarter warrants in I part think, because on. unwind call of shares XX is million own the in

Some cover that market sort in taken by shorting And be out short them stock. that when will warrant covered go and or deliver have of risk those of -- shares, away. will interest that we the

that So to squeeze as there's think I opportunity potential look, because I continue good we're we put short a numbers. excited about up think real

Mike Grondahl

And follow-up. then a maybe quick just

have the water, megawatts today's and attempted to that? XXX in the rough What that's you in land worth On on the put valuation think you a market?

Patrick Fleury

we're time. So -- But I look, yet, Mike. stuff this going not takes to think

is just really the for think do is I what will right quickly by now. barbell lay approach you space a characterized I out

because less infrastructure and to right and the XX-year that ] their long-term is got you gut. because those in an I they're financeable, you're secure the hand, deals and very can building specs arms very the you've intensive capacity And Magnificent a the right, so by Those [ like bringing on look contract is and type different. according that stocks be are mean XX-, have capital where X XX-, building that to race X-, deals what we're effectively

GPUs. owning they're So the

but so And lot are a other Capitalists spectrum, of deals, balance enter that by other of formed sort and to HPC by [ the of to fund you want the end otherwise so and sheet funded the on newly of or $XX have AI, that infrastructure to and the on X very the X-year end ] are from GPU. that barbell gut, is legitimate companies Venture they're into million anywhere relying the then months

a legitimate So party are the right? deals we'll credit corporate just those because saying, capital a basis points Because that's XXX, lot not start-up much more intensive risk. finance financing behind These it's to are XXX companies. finance, harder "Hey,

approach, But then barbell. side and is startup-type higher we sides credit much So contracts capital is intensive. if that's are kind side of companies sense. quality, of both that's And that capital working financeable the one intensive, risk more more makes that other longer-term less barbell the

Operator

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

Unknown Analyst

by I you much, behalf This on and everyone. very And one, the afternoon, of targeted question question self-mining services? 'XX Thank the Pipes. by utilized of actually could capacity for ] XXX megawatts HPC is Peter end first so 'XX end footprint. my the potentially Cloud the your of XXX total is, operator, Sevelin for And good [ and Lucas you asking be or believe

Patrick Fleury

it's [indiscernible] Patrick speaking. Yes.

and means our his Xx, as are are companies long return So the given when I think there I infrastructure Bitcoin EBITDA. miners, capital. but at yes, are an mentioned insider data in infrastructure are in out And our peers we XXx, among both if like and of ownership, remarks, we right? hyperscalers, highest are XXx, remarks, and on that our at some are now So scramble trading best center trading a there's mass XXx miners company, think XXx infrastructure we, while we in and for Paul Bitcoin that Paul I saying at on blessed focused we're we trade

where to assure puck So insider the the focused are, that and space, of the long-term as very value, creating highest in companies we'll I ownership can on you we are is. one we skate

Unknown Analyst

talk both? preference What's potential or this, any or at would but maybe HPC here? to come capacity Mariner early the Lake it's And about Nautilus

Patrick Fleury

Yes.

AI Bitcoin the for then the us, So Lake facility come would strictly, Mariner. strictly HPC And is is Nautilus mining. capacity at

at that open investor the have our Mariner we today, to investor put we and his have in and you'll said updated we So function. value Lake deck will just megawatts highest be see best XXX as deck, in accretive and remarks, that Paul posted --

Unknown Analyst

any today frame with And are maybe the up And you how discussions would just you having potential demand? tenants?

Patrick Fleury

Look, a that, publicly, I to X-megawatt since mentioned you I the Mariner. quarter I'll in. jump pilot at as But Lake Paul, been think we've Yes. think, please but answer look, we've running fourth

an also retained on HPC had the have AI the since front adviser quarter. We fourth

we for co-location sort So of on one of for much companies the like all smaller time. significant not and have are GPU all, in that again, been and significant where, discussions said, there's not we're technology time. there's take like scale and that And said, things size not these because funding I there's then quite we're I very there's co-location, the solution some larger-scale fits buying the on GPUs. focused taking risk GPUs

again, forward time. XXXX, we we out. as that want to some we'll it been that's is on quite think add very in through we're something you has more rolling Paul, move look granularity able that about So focused And there -- it, to that? our hopeful but is kind to to be for management talk I team of that anything

Paul Prager

question about and say very, I is to demand in Only would response demand, very timely. significant your

as a think as they are to big I trying these fast as of can. lot as get folks they can

qualification. comes I access country XX we're in one sites water in unique to I most ESG energy, of cost, it availability, when As energy said and my size, of course, think the remarks, premier their to the

our very job the to meaningful management, at our I'm energy. is property site we, representing demand look and comfortable do and our need highest and value that as think use I So for

Unknown Analyst

about housing And last opportunities maybe ]. M&A that my might involve post [ one

So goes more [ sites current opportunity thoughts what's Are looking space? into something [indiscernible] your this ]? on if at you

Patrick Fleury

you it? you do to do want take Or take Paul, want that? to Sure.

Paul Prager

very out we're existing just focus. really trying and space. be that and hard Yes. some we're stay the the going is If here primary And the for in to facilities, to misinformation quite our of volatility time. course full busy on build Listen, execution. It's focus we

peers other in we group. unlike of any with almost this course, infrastructure, Of our energy familiar are

we we're plan, so is on as right be something But to keeping a we true which really zero focused we for to make our And if as mining. money that much heads ], has business job opportunistic compelling and will our can our [ now, carbon find and to trying thesis investors. is executing our down, doing remain

Operator

comes Our line next Papanastasiou from of Stifel. the Bill question with

Bill Papanastasiou

management down the hear lead has to strides paying has to refinance, with taken XX.X the of very given want on I'm the to that Obviously, what provided debt. I exahash? to the at more point And appetite just question significant get and a is outlook management the loan. curious guidance Yes. to term favorable this

Patrick Fleury

are it, $XX,XXX. cash. mean, the So of cash a look, I And we're flow and right call generating think XX Bitcoin given where $XX,XXX, to generating now, XX we're economics company asset a biggest is, this day is of ability, the mining lot I now. right cost our

to $XXX,XXX price on been depending do because it's a pretty here. volatile exactly of where can math, Bitcoin day but kind is $XXX,XXX you the it's So

debt As Paul I cash down mean on maximizing down taking said it in are flow completely. his remarks focused we and the now, kind of out just head ultimately and taking

pursue stays Bitcoin on But sort in here, I fourth think flow and a maybe. end something can So think we'll yes, of pay by we we quarter, of could off if the as yes, front? keep quarter. third naturally refinancing time, we cash the move I forward debt harvesting

not Bill, think, of is refinancing, our it's I that's, more eliminating. focus, necessarily So

Bill Papanastasiou

trying end February. on And cash ] reported the provide just you #X? get hand under final had $XX what Just as any in due to there's some on or terms of outstanding build-out color some of -- color payments whether building recent the million then the at question, of for in that. the Can on my company equipment [ of earnings, preliminary purchases second

Patrick Fleury

about answer So question. answer, I the think going think it, parts to three way different the of that I'm we to

$XX excess on just I about of liquidity balance So million. think the would what about call true I sheet

So couple through kind what the kind to the adequate liquidity has over any company of next navigate months. of make we're volatility address of that's and holding to having that an the sure

have not and third two, So that's the contracts of folds miners, that one. Number example, question. do any liabilities number question. for of sort into We part currently, then for any that

to X infrastructure which perspective. at Lake Building So scheduled from June, substantially that is in is Mariner, be funded completed an

purchase but not we're any make Hence, don't miners. yet. with for liabilities my have building answer of all minor Does to that a We announced announced we going populate to not question that how that your we sort previous of sense? currently, have have

Bill Papanastasiou

I specific. have mean Sorry, I for the the part. instead of been should infrastructure mining more did part

me. everything That's So from to the questions all that up. clear helps

Operator

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

Joshua Siegler

around you appreciate a dig compared a options infrastructure financing transparency financing question is provided I'm committed infrastructure. that infrastructure all deeper here. can bunch My curious to exist you for committed HPC little bit Bitcoin of to the first Really mining? the around would for into if really KPIs for

Patrick Fleury

type financing X-, not barbell contract. on of look, I down think think that's to I the year. to great to go really again, cap customer, I'm the abundant I HPC but answer detail, a question further going XX-, road will, But XX-, type back about. and the that's XX-year point, answer that short at some in available So But for large going and because is is the to that Because think important this to approach the I'm any right? AI

so us. build And cost for that

this it's of million million. megawatts, with XXX about megawatt are these anywhere think so a you if to because me, ranges bear $X but from and kind around So $X anywhere, wide moves

if if would contract know big right? you $XXX billion, XX% to I what finance say, multiply that's billion you XX% contract, are long-term is by of counterparty, like to have cost. an underlying numbers. $X an you I that so with And million, those that $X So can A-rated though,

barbell. one the part that's of Now

which of more is the intensive. part other barbell, the The capital smaller,

So the and building by were go GPUs. everything. and X-megawatt we're like build out give infrastructure we're example, per megawatt million the to $XX right? $XX infrastructure would then We're for pilot, the you -- if our the an that we're and buying the and probably I'll building we to all GPUs around Because million doing be owning

of the But of generally because up counterparties X-year are And sort day kind again, the contract two type there, like over one. they're more so like, I roughly that is, to be said, payback XX% of contracts contracts, speaking, just tend putting those the years. value on and smaller companies like

at of other together, are risk. with barbell deals -- of the and And finance imagine, when the finance. when sort of those, we a types like side doing of financial bunch that would looking you bunch sort A-rated as the That you being say, like said, of of of same [ put then you XX those it's ], right, the can so are counterparty a CMBS companies it to you're like company an doing, of put harder megawatts decreasing because

So that there just possibility. complicated. It's more is

address can you I in help that time. see, as and both others you I like So kind think cover have all does But space the sides same. reported other folks your take And question? of just know the

Joshua Siegler

does. Yes, appreciate see building Really progress that Absolutely it you you're infrastructure moving in and the definitely as out to there interested forward. and color seeing what

Bitcoin mining the to over I For to fundamentals in just the my side. second wanted question, flip

better trend is Lake came expect our So the to initial to much shifting and any I mix year guidance, your of you in, us towards cost Mariner, believe it better power that performed can Obviously, how the for more for you give but 'XX? than your as expectations insight than

Patrick Fleury

But just sure. that our I I website. that beat an again you'll think can blended updated deck grab everyone we're and sort to guiding guys. all with mean that I [ look, ]. of see out you put investor guidance Yes, rather keep $X.XXX would off of we

XXXX. $X.XXX we for delivered ] said, you As [

So can think Lake and in you our also and price a look, average slide deck at there's confident forward pricing. see Mariner where I we're investor historical pretty

temperatures range, have site. one period showing So a know, over confident a day, Khan in learned kind other it's we're that heard, have Lake where as -- site, temperatures been was ] forward. and the history summer, record a XXXXs. There's and a actually kept stat it our the beautiful at XXX we'll And you winter going since the since Bitcoin. I -- like just pretty couple weeks Josh, it's think talking as of that that and at place Mariner Nazer of quarter-over-quarter, in the were day the to roughly same I been weeks that the not but not in have I had we're and in we degrees be of over [ XX-year I keeping think, been than is actually temperatures other couple -- mine

source with So zero perfect carbon road to abundant mine an place it is down the a of hydroelectricity just Bitcoin.

Operator

Our next Rowland with question Memestock Watch is from [ James ].

Unknown Analyst

so [ ] Wulf or Watch digging in have own I the my Wulf fundamental biggest analysis, analysis, many has a So [indiscernible] on much as all my been And analysis, on always past my made in Memestock nightly on pick all year and website, miner personal And over miner position of my to cryptominers forecasting others. miners. so. miners, offer to decision service Wulf. I I run on doing fact, opposed

So ask to. that to anything, even wanted wonderful say to been I just before call I has this listen

hands. company the they're in like think I great sounds

question my in miner having? well perform about the of [indiscernible] lot to and say specific a raised cryptominer crypto invest is, can that. post Now the looking guys space you what you doubts are would for to Obviously, investors a questions to looking there and that

would to should what take say cryptominer? others? in over they to a looking Why So that's invest Wulf you someone

Paul Prager

is my can all, Paul. your of we the we I you remarks in in and that ourselves at And company. are lower investment this. ways First I it's much than This often respond that. Listen, try trade significantly prepared different ask multiple to And answer in question couple appreciate a want a aware I group, peer why? we on a in that think of our to many I I'd lower. mentioned

I've our there it's think, a out repeatedly debt suggesting misunderstood. is I been nonevent. generally,

excess we do that the why weeks. last sheet. months. million make $XX halved it the X consider have our we've free there yet. But is reason But effectively cash I would. remains this promised We our in approximately the we in And they balance perception less payment I We're and just We managed million poised debt it. substantial quarter flow, repaid than have $XX of very principal liquidity the robust performance successfully that believe considerable $XX paid invested coming to haven't on to a there has X months. million underscores approximately another down ability of we the generate our over in of out fourth that as debt people hope load some

very remaining I manage strong So we footing, think financial and have our the balance. ability debt we're highly to confident in

So dilution. is shareholders objectives. we've I from at be fund about to committed to have a positive. Two, the I deliberate misperception going accretive would hope that, we're think that look future I think I a really regarding always suffered misunderstood investors using to growth ATM negative

out troubled And doesn't at of recognize they am it investors. When people by understand I for dilution But accretive be to position sit expense multiple, on the equipment facts, billion at We one, is of all rapidly the investment our flow. last best, not And that shareholders. producing me our of $X.X would there implementing very the investment I our of hope peers, I and to I cash significant primary management very have several scorecard larger be is happen profitability. scaled be that watch. to our because where with the this, of infrastructure low in seem me. things: future a only far lifestyle if in the the now companies staggering quarters. majority is my The TeraWulf think look always lower it We're right for a one tends on end a never well will ATM facility. three our which now more peers That beyond

before he our every mine after the the approximately And is power or lowest a day costs said, real our loaded, $XX,XXX. other competitors Our almost and said, XX-bit And the don't possible we their to mining having. a at cost disclose of money. current that you company to Bitcoin a do. cost That's and what Patrick if in among to day reason are There's single publicly if way The SG&A having $XXX,XXX companies, compared today but making about includes listen production. fully many to as think $XX,XXX their $XX,XXX we company. is why per the bitcoin on listed that coin Bitcoin is

largest shareholders. I'm of is TeraWulf's alignment. The one reason second

Our management invested. is team fully

is your so company. we I we should We you, share question than as are answer changing why a our Wulf, changing look It really digital and and win scalability. company Bitcoin a investment more is meaningful grateful do our the different the heavily larger reminded earlier, of of goals. we our valuations is I and animal. peers, will invest scalability in of you to do some and We our continue now That's I'm win. And How after I an big efficiency for same us mentioned of make of in entirely fast, scale mining When think happening. infrastructure competitors, and profit our people think small story. for the and We're strategy. Again, entirely many So invested the a fortune. and backbone peers. in you for to peerless. your [indiscernible]. mining? win, if fortune at old with should It's in the profitability. you My Patrick the profitability make is operations I'm if of start The Bitcoin And We win. our lastly, empowers management only the aligned. optimize mining drive any be the team TeraWulf

Operator

Research with Our next Point question line comes Compass from of ]. the Flynn [ Joe

Unknown Analyst

related to between getting about we megawatts? with ] down ultimately But said had before XXXX by question to I million, down get growth or XXX should [ a paying to megawatts by debt the regard you having. delever And the XXX debt? the $XX XXXX. ultimately, balance ultimately to or investing you With expect post do paying how the that, to think

Patrick Fleury

paydown from when the cash and profitability. of all So all lot about generation a like we've cash call about that's a is to the down week free and flow said. free pay okay? $XXX,XXX $XXX,XXX day, generating of we debt coming, flow cash So look, April, first company debt are it, we're now. that the generating, right is didn't of talk it we But distinguishing to because I of our And talked objective free mean, just today. primary I was flow make sure Paul this want I

continue continue generate be having post to free profitable so of we flow. price around a and cash bitcoin where lot very And today will are we we'll to assuming

so free with And debt to flow. extinguish our is the goal cash

a think use we can for flow use now, focus I do we buybacks? we it make Do it cash repayment. it dividends? that occurs, use decision we the grow accretively? What on we So do once But for? for right then debt Do free to is use

Unknown Analyst

appetite [ the in for And kind in regards jewels [ seen current miners, or talk to like per ], then the we've $XX the $XX to miners, like to that add helpful. maybe can terahash Great. anything there? $XX prices ] to just you opportunities are $XX lower of the market That's about still lock purchasing you there could

Patrick Fleury

OEM Yes, so sure. certainly Look, different the a -- lot last I think there's than of a or right? options. of obviously more lot cycle, There's different

get of opportunity we you very look, still move but up, up, price So there's expect a as continues miners referenced. does around attractive move price, remaining I there to at like Bitcoin a lot just to that the would for pricing miners think that level out

near-term not I ours. yes, think of So concern a that's

Operator

back over closing remarks. Mr. to Prager I time, for pass to like this Paul would At floor the

Paul Prager

to I us today. with want assets, believe I investors. itself lowest best-in-class summary, TeraWulf distinguishes through you for economics, ability its infrastructure joining alignment owned to In unit thank again scale and

myself, best I we that company. TeraWulf are pursue well company shareholders. Thank and to interest mining and leading in build investor trust and the only your significant of as the we aware you the a assure its of for will can As support you bitcoin strive very

Operator

Thank teleconference. you. This concludes today's

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

TeraWulf (WULF) 19 Mar 242023 Q4 Earnings call transcript