TeraWulf shifts focus to AI after Bitcoin mining dips 21% in Q2

TeraWulf published its Q2 financial report on August 12. The report revealed a 21% drop in self-mined Bitcoin from 889 to 699 Bitcoins year over year. However, the Bitcoin miner’s revenue rose 130.2% to $35.6 million in Q2 2024 compared to $15.5 million in Q2 2023.  

The firm’s gross profit (excluding depreciation) increased by 109.4% from $10.3M in Q2 2023 to $21.7 million in Q2 2024. According to the financial report, the gross profit margin as a percentage of revenue dropped 6% from 66.9% in Q2 2023 to 60.9% in Q2 2024. TeraWulf attributed this decline to the halving event in April 2024 and the doubling in network difficulty.

TeraWulf publishes a ‘better-than-expected’ financial report

TeraWulf's Second Quarter 2024 Financial Results ????

???? Q2 2024 Revenue of $35.6 million, gross profit (exclusive of depreciation) of $21.7 million and Non-GAAP Adjusted EBITDA of $19.5 million
???? Revenue growth of 130.2% year-over-year for the three-month period ended June 30,…

— TeraWulf (@TeraWulfInc) August 12, 2024

According to TeraWulf’s financial report on August 12, the Bitcoin miner recorded a Q2 2024 revenue of $35.6 million (+130.2%), gross profit (exclusive of depreciation) of $21.7 million (+109.4%), and a Non-GAAP adjusted EBITDA of $19.5 million (+156.4%). The financial report also showed year-over-year revenue growth of 130.2% for the three-month period ended June 30, 2024. 

The amount of self-mined Bitcoin dropped 21.4% from 889 in Q2 2023 to 699 in Q2 2024. However, the total value increased from $24.9 million in Q2 2023 to $46.1 million in Q2 2024. TeraWulf attributed the revenue increase to the average rise in Bitcoin price and a significant YoY growth in operating self-mining hashrate by 80% to 8.8EH/s. 

Speaking about the report, Patrick Fleury, TeraWulf’s CFO said, “In the second quarter of 2024, TeraWulf delivered solid financial performance, even in a challenging fundamental business environment following the Bitcoin reward halving in April, mining a total of 699 bitcoin across our facilities.”

TeraWulf fully eliminated its debt ahead of maturity after paying nearly $30.2 million in Q2 2024 and a follow-up repayment of $75.8 million in July 2024.

The Bitcoin miner shifts to AI and HPC to maximize shareholder value

According to TeraWulf CEO Paul Prager, the company was solidifying its position as an industry leader by advancing its high-performance computing (HPC) capabilities and AI after the completion of Building 4 at Lake Mariner. He affirmed his firm’s focus on management efficiency and low-cost, zero-carbon energy enabled the company to capitalize on emerging opportunities in the fast-growing data center market.

Prager pointed out that TeraWulf’s extensive 600-megawatt infrastructure allowed the company to leverage its Bitcoin mining success to expand into ‘alternative compute hosting.’ He asserted that the strategic move aligned perfectly with the rising demand for ‘high-power data center capacity,’ positioning the company for long-term profitability and growth. 

Additionally, CFO Patrick Fleury claimed that the company’s robust balance sheet, highlighted by debt elimination and strong cash position, showed that the company was committed to maximizing shareholder value as it looked to diversify into the expansion of AI and HPC in the latter half of 2024.

According to TeraWulf’s SVP of Operations, Sean Farrell, the company had committed an initial 2MW power block at the Lake Mariner facility to the AI-HPC pilot project.