TeraWulf (WULF) Q1 2023 earnings summary

Executive summary

• Q1 revenue was $11.533M versus $5.002M a year earlier; gross profit was $6.531M. 533 Bitcoin were self-mined as hashrate capacity rose 65% to 3.3 EH/s.

• Consolidated net loss was $26.516M; net loss attributable to common stockholders was $26.5M.

• Nautilus began mining in February, adding nuclear-powered capacity; remaining construction at Lake Mariner and Nautilus was targeted for completion in Q2 2023.

Financial highlights

• Revenue was $11.533M versus $5.002M; gross profit was $6.531M versus $0.217M.

• Operating loss was $9.221M versus $9.167M; basic and diluted loss per share was $0.16 versus $0.18.

• Interest expense increased to $6.8M from $5.3M, primarily reflecting higher term-loan principal and debt-cost amortization.

• Cash and restricted cash totaled $17.0M at March 31; operating cash use was $8.713M and investing cash use was $16.2M.

Outlook and guidance

• Targeted 5.5 EH/s and 50,000 operational miners, representing ~160 MW of net mining infrastructure, in Q2 2023.

• Lake Mariner Building 2 was expected to increase operational capacity from 60 MW to 110 MW in Q2; an additional 80 MW could bring the facility to 190 MW near term.

• Nautilus phase one was fully energized as of April 20; a further 50 MW was planned for future phases, subject to capital availability.

• Management expected cash, Bitcoin sales, hosting services and, if needed, equity issuance to fund operations and buildout until positive operating cash flow.