TeraWulf Reports 21% Drop in Bitcoin Mining, But Revenue Beats Estimates in Q2

TeraWulf’s second-quarter earnings report, released in early August, showed a mixed performance.

Although the company produced less BTC than in the same period in 2023, its revenue increased modestly compared to the estimated numbers.

TeraWulf’s second quarter results

The report revealed that TeraWulf mined 699 BTC at its Lake Mariner and Nautilus Cryptomine facilities, a 21% decrease from the same period last year.

The company’s revenue for the quarter, on the other hand, was $35.6 million, slightly beating estimates of $35.4 million. Despite this, TeraWulf reported a loss of $0.03 per share, worse than the estimated loss of $0.02 per share.

It also witnessed a dramatic 243% increase in the cost of Bitcoin mining, with expenses rising from $6,688 per Bitcoin in the second quarter of 2023 to $22,954 per Bitcoin in the second quarter of 2024.

This increase was driven by a nearly doubled network difficulty and the effects of April’s Bitcoin Halving, which reduced the reward miners receive. Commenting on the latest Q2 2024 figures, TeraWulf CFO Patrick Fleury said:

“In the second quarter of 2024, TeraWulf delivered a solid financial performance, even in a challenging fundamental business environment after the Bitcoin reward halving in April, mining a total of 699 bitcoins in our facilities.In addition, our strong balance sheet, highlighted by a strong cash position and debt elimination, positions us well for future growth.We remain committed to maximizing shareholder value as we diversify into the expansion of HPC and AI in the second half of the year.”

Focused on large-scale HPC and AI project

TeraWulf is currently working to advance activities to support a large-scale high-performance computing (HPC) and AI project at the Lake Mariner Facility.

The mining company has allocated an initial power of 2MW to the project, which can support thousands of advanced graphics processing units (GPUs). In the second quarter, it acquired a 128-GPU cluster from NVIDIA, funded by a major OEM.

To facilitate this effort, TeraWulf said it has improved Internet connectivity at the Lake Mariner facility to handle AI’s bandwidth needs, installed a closed-loop liquid cooling system, and has implemented power supply redundancy to ensure total reliability.

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