EASTON, Maryland–(BUSINESS WIRE)–TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates vertically integrated national bitcoin mining facilities powered by more than 91% carbon-free energy, is pleased to announce that the Company and a subsidiary of Talen Energy Corporation have entered into an agreement to amend their existing joint venture agreement (the “Nautilus JV”) for the Nautilus Cryptomine bitcoin mining facility (the “Nautilus Cryptomine Facility”) , which is located next to, and will source zero-carbon nuclear power directly from Talen’s 2.5 GW Susquehanna Generating Station in Pennsylvania.
The Nautilus Cryptomine facility enjoys one of the lowest electricity costs among its publicly traded mining counterparts in the United States with contracted power for the first 100 MW of raw mining capacity at $0.02 per kilowatt hour for an initial term of five years (the “Block”). Under the Amendments, TeraWulf will maintain earnings from its previous 50 MW share of the Initial Block at $0.02 per kilowatt-hour. TeraWulf’s subsidiary, Beowulf Electricity & Data Inc ., will continue to operate the Nautilus Cryptomine facility under its previously announced Facility Services Agreement.
Under the amended agreement, TeraWulf will retain a thirty-three percent (33%) interest in the Nautilus joint venture. The Nautilus Cryptomine facility has access to up to 300MW of mining capacity from the Susquehanna station, with each of the joint venture members having the right to increase the capacity of the digital infrastructure at the site by 50MW at the beyond the initial 200 MW planned. The Nautilus Cryptomine facility is set to be the first bitcoin mining site powered by 100% carbon-free nuclear energy “behind the meter”. The Nautilus Cryptomine facility remains on track to begin mining operations in Q4 2022.
Simultaneously with the changes to the Nautilus joint venture, TeraWulf entered into a business agreement with Bitmain Technologies Limited (“Bitmain”) whereby previous payments from TeraWulf should be used for future antminer shipments consisting of Bitmain S19 XP and S19j Pro miners . The Company currently anticipates minimal additional cash payments to supplement its minor purchases for existing minor orders. This arrangement should provide TeraWulf with the flexibility to align the timing and delivery of miners with the deployment of infrastructure at both TeraWulf facilities.
TeraWulf Co-Founder and CEO, Paul Prager, said, “The amendments to the Nautilus JV agreement allow TeraWulf to reduce our short-term capital obligations to the Nautilus Cryptomine facility, while preserving growth opportunities. future capacity expansion. Prager continued, “The amended joint venture will now focus solely on infrastructure investment and governance, allowing each party to deploy their own miners. With these changes, TeraWulf can optimize two business-critical value drivers; 50 MW of two hundred horsepower for five years at the Nautilus facility and the deployment of miners at our wholly-owned Lake Mariner facility, where we are aggressively ramping up operations.
As previously announced, TeraWulf recently powered up the first dedicated mining building at its Lake Mariner facility for a total online digital capacity of approximately 60 MW. Building 2 is expected to add an additional 50 MW of mining capacity in the fourth quarter, for a total targeted year-end capacity of 110 MW. When complete, Lake Mariner has the ability to achieve over 500MW of low-cost infrastructure capacity in a location that leverages its proximity to abundant hydroelectric power and minimal demand, which together result in low 24 hour electricity prices.
Nazar Khan, CTO and COO of TeraWulf, commented, “Nautilus JV’s amended agreement scales the company’s miner deployment. This should allow TeraWulf to efficiently deploy its short-term miner deliveries with its digital infrastructure powered up in New York, where we have the most efficient infrastructure cost and energy cost, thus maximizing the financial benefits of self-exploitation for our stakeholders.
Additional information about this amended joint venture agreement can be found in a current report on Form 8-K filed with the Securities and Exchange Commission. The Company also intends to update its presentation to investors reflecting these and other changes in the near future.
Upcoming Investor Event
TeraWulf announced that the company will speak at the SALT New York 2022 conference to be held September 12-14, 2022 in New York City. Details of this and other scheduled events are subject to change and additional information can be found on the TeraWulf Investor Relations website at www.investors.terawulf.com under “Events and presentations”.
TeraWulf (Nasdaq: WULF) owns and operates environmentally vertically integrated bitcoin mining facilities in the United States. Led by an experienced group of energy entrepreneurs, the company is currently developing two mining facilities, Lake Mariner in New York and the Nautilus Cryptomine facility in Pennsylvania, with the goal of deploying over 800MW of mining capacity by 2025, allowing more than 23 exahash per second of the expected hashrate. TeraWulf generates domestically produced bitcoins powered by nuclear, hydro, and solar power with the goal of using 100% zero-carbon energy. With a central focus of ESG that is directly tied to its business success, TeraWulf expects to deliver an attractive mining economy on 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. These forward-looking statements include statements regarding anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are statements that could be considered forward-looking statements. In addition, forward-looking statements are generally identified by words such as “plan”, “believe”, “objective”, “target”, “aim”, “expect”, “anticipate”, “intend”. of”, “outlook”, “estimate”, “plan”, “project”, “continue”, “could”, “may”, “could”, “possible”, “potential”, “predict”, “should” , “would” and other words and phrases, although the absence of such words or phrases 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 anticipated. Actual results could differ materially from those expressed or implied by the forward-looking statements depending on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions of the cryptocurrency mining industry, including the fluctuation of market prices of bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including with respect to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among different cryptocurrency mining service providers; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates, including regulation regarding electricity generation, the use of cryptocurrency and/or the cryptocurrency mining; (4) the ability to implement certain business objectives and execute corporate projects in a timely and cost-effective manner; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with respect to growth strategies or operations; (6) loss of public confidence in bitcoin or other cryptocurrencies and the potential for manipulation of the cryptocurrency market; (7) the potential for cybercrime, money laundering, malware and phishing infections and/or loss and interference resulting from equipment malfunction or failure, physical disaster, data security breach, computer malfunction or sabotage (and costs associated with any of the above); (8) the availability, delivery schedule and cost of equipment necessary to maintain and develop TeraWulf’s business and operations, including mining equipment and infrastructure equipment meeting the technical or other specifications required to achieve its strategy growth; (9) employment-related factors, including the loss of key employees; (10) litigation relating to TeraWulf, IKONICS and/or the business combination; (11) the ability to recognize the objectives and expected benefits of the business combination; and (12) other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. TeraWulf undertakes no obligation to publicly update any forward-looking statement after it is made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the complete 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.