TeraWulf increases expected Q1 self mining has rate

TeraWulf announced that it has successfully restructured its previously announced purchase agreement with Bitmain Technologies, enabling the company to significantly expand its self-mining capacity and fully utilize 160 MW of its available mining capacity expected in Q1 2023. The company also announced that it has raised new capital to repay the convertible promissory note with YA II PN, in full and expects to simultaneously issue a notice to Yorkville to terminate the accompanying standby equity purchase agreement, or SEPA. In connection with the recent modifications to the company’s purchase agreement with Bitmain, the parties have agreed to cancel TeraWulf’s December batch of approximately 3,000 S19 XP Pro bitcoin mining machines and, together with the application of remaining unused deposits with Bitmain, replace that batch with approximately 14,000 S19j Pro miners for delivery in Q1 2023 at no additional cost to the company. With the incremental delivery of 8,200 miners, the company is increasing its estimated Q1 2023 self-mining target to 44,450 owned miners deployed from its prior estimate of 36,250 owned miners. Additionally, the revised Bitmain agreement should enable the company to fully utilize its 110 MW of mining capacity at the Lake Mariner facility and 50 MW of net mining capacity at the Nautilus Cryptomine facility, both of which are expected to be fully energized in Q1 2023. The company also announced that it has raised approximately $10M of new capital comprised of a $6.7M registered direct offering of common stock in addition to the previous issuance of $3.4M of convertible promissory notes to some of its largest shareholders in a transaction exempt from registration under the Securities Act of 1933, as amended. The company intends to use the aggregate net proceeds to repay the Advance with Yorkville and simultaneously issue a notice to Yorkville to terminate the accompanying SEPA entered into on June 2, and for other general corporate purposes.