TeraWulf Reports Second-Quarter Earnings, Beats Revenue Estimates
TeraWulf Inc. (WULF), a Bitcoin mining company, reported its second-quarter financial results on Monday, exceeding analysts' expectations for revenue. The company generated $35.574 million in revenue, surpassing the $35.439 million consensus estimate. However, TeraWulf missed earnings estimates, reporting a loss of three cents per share compared to the expected loss of two cents per share.
Despite the earnings miss, TeraWulf's total revenue witnessed a significant year-over-year increase of 130.2%. The company mined 699 Bitcoin in the second quarter, a 21% decrease compared to the same period last year. However, TeraWulf's operational self-mining hash rate at its Lake Mariner facility grew to 8.8 EH/s, representing a 79.6% year-over-year increase.
TeraWulf's total hash rate across both its facilities exceeded 10 EH/s at the end of the quarter. The company noted an increase in power cost per self-mined Bitcoin to $22,954 per Bitcoin in the quarter, compared to $6,688 per Bitcoin in the second quarter of 2023. This increase is attributed to a rise in network difficulty and the halving event in April.
"TeraWulf's second-quarter results reflect our unwavering commitment to operational excellence and strategic growth," said Paul Prager, CEO of TeraWulf. "By completing the construction of Building 4 at Lake Mariner, advancing our AI and high-performance computing initiatives, and streamlining our capital structure, we have solidified our position as a leader in the industry."
TeraWulf highlighted its focus on low-cost, predominantly zero-carbon energy and efficient management, enabling the company to achieve industry-leading profitability. This positioning allows TeraWulf to capitalize on emerging opportunities in the rapidly growing data center market.
The company commenced construction on Building 5 at its Lake Mariner Facility, which is expected to contribute an additional 50 MW of infrastructure capacity by the first quarter of 2025. Additionally, TeraWulf has 50 MW of expansion capacity at its Nautilus Cryptomine facility, anticipated to come online in 2025, potentially increasing the company's Bitcoin mining operating capacity by up to 2.5 EH/s at the site.
TeraWulf repaid $30.2 million of debt in the second quarter and followed it up with an additional $75.8 million repayment in July, fully paying down the remaining balance on the company's term loans ahead of maturity. TeraWulf ended the quarter with $104.1 million in cash and cash equivalents.
TeraWulf's management team will hold a conference call to discuss these results at 5 p.m. ET.