TeraWulf (WULF) Announces Recent Fundings and Near-Term Ramp-up of Digital Asset Infrastructure


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TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates a fully integrated nationwide bitcoin mining facility powered by over 91% carbon-free energy, today announced recent financing actions which should support the significant ramp-up of the Company’s mining operations in the second half of 2022.

The company began initial mining operations at its Lake Mariner facility in New York in March taking advantage of existing space in the now decommissioned coal-fired power plant. TeraWulf is now in the final stages of completing its first dedicated on-site mining building, which will house approximately 50MW of capacity and is expected to begin chopping early in the third quarter. The company is targeting completion of its second building at the site, adding an additional 50 MW of mining capacity in the fourth quarter, and expects to end 2022 with approximately 110 MW of total mining capacity at Lake Mariner.

The Nautilus Cryptomine facility, a partnership between TeraWulf and Talen Energy Corporation, has also made significant construction progress and remains on track to begin mining in the third quarter. The company plans to exit 2022 with 100MW of net mining capacity at Nautilus, representing TeraWulf’s 50% share in the joint venture. With its Lake Mariner facility, TeraWulf plans to successfully complete 210 MW of digital asset infrastructure by the end of 2022.

Recent Capital Raising Activity and Prospects

The company recently announced that it has entered into a reserve stock purchase agreement (“SEPA”) with Yorkville Advisors Global, LP to sell up to $50 million of the company’s common stock to the sole discretion of the company at any time during the 36 month term of the agreement. Under SEPA, the Company received an advance loan of $15 million from Yorkville in the form of a convertible promissory note.

In addition, the Company announced today that it has reached an agreement in principle with its existing lenders for an additional supplemental facility of up to $50 million with an initial drawdown of $15 million at closing, which is subject final documentation and various closing transactions conditions. The Company intends to use the net proceeds of these two financings for the purchase of miners and to complete the infrastructure of 210 MW of mining capacity.

While recent capital raising activity will help ramp up mining operations in the near term, the company also announced today that it has engaged Cantor Fitzgerald & Co. and Ducera Partners LLC to help the company raise transformative growth capital in 2022.

“Our recent financing activities provide valuable access to capital, and we anticipate that any additional growth capital we are able to raise will help secure a rapid path to achieving our operational objectives in 2022,” said Paul Prager. , Co-Founder, CEO, and Chairman of the Board of TeraWulf. “Our vertically integrated strategy, along with the most competitive energy costs in the industry, differentiates TeraWulf from our peers and should allow us to offer a strong mining economy while ensuring the flexibility to rapidly scale our operations towards our goal. to deploy 800 MW of zero-carbon mining capacity by 2025.”

Additional information regarding SEPA is available in the current report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on June 8, 2022. The advance has not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Conference call and additional documents

TeraWulf will host a conference call on Monday, June 13, 2022, including time for Q&A, beginning at 5:00 p.m. EST to provide additional details on recent fundraising activities and progress. at its Lake Mariner and Nautilus Cryptomine facilities. All interested parties can access a live webcast of this conference call at www.terawulf.comunder the “Investors” and “Webcasts and Presentations” tabs.


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