TeraWulf Inc.

Greetings and welcome to the Tara Wolf, Inc. 2023 third quarter earnings call. At this time, all participants are in listen-only mode. Brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jason Asad, Director of Corporate Communications. Thank you, Mr. Asad. You may begin.

Thank you, Operator. Good afternoon and welcome to TerraWolf's third quarter 2023 earnings call. Thank you for joining us today for our call. With me on today's call are Chairman and Chief Executive Officer Paul Prager and our Chief Financial Officer Patrick Fleury. Before we get started, I'd like to remind everyone that our prepared remarks may contain forward-looking statements which are subject to risk and uncertainties that we may make additional forward-looking statements during the question and answer session. These forward-looking statements are subject to risk and uncertainties and actual results may differ materially. When used in this call, the words anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project, and similar expressions as they relate to TerraWolf are such forward-looking statements. Investors are cautioned that forward-looking statements involve risk and uncertainties, which may cause actual results to differ materially from those anticipated by TerraWolf at this time. In addition, other risks are more fully described in TerraWolf's public finance with the U.S. Securities Exchange Commission, which may be viewed at sec.gov and in the investor section of our corporate website at www.terrawolf.com. Finally, please note that on today's call, we'll refer to certain non-GAAP financial measures. Please refer to our company's periodic reports on Form 10-K and 10-Q and on our website for full reconciliation of these non-GAAP performance measures to the most comparable GAAP financial measures. We'll begin today's call with prepared remarks from Paul and Patrick, then we'll proceed to Q&A. It's my pleasure to now turn the call over to Terri Willis CEO, Paul Prager.

Paul? Thank you, Jason. Good afternoon, everyone, and thank you for joining us on a third quarter 2023 earnings call. During the third quarter, Terawolf continued to take proactive steps to execute on a strategic growth plan with the goal of reaching 7.9 exahash of Bitcoin mining infrastructure capacity by year end, further positioning the company for long-term sustainable success. Before turning the call over to our CFO, Patrick Fleury, for a review of our financial results. I would like to comment on some recent highlights from our business and on our continued confidence in the year ahead. As a reminder to everyone joining us today, Terawolf mines Bitcoin utilizing predominantly zero-carbon energy resources at two data centers, our wholly owned and operated Lake Marana facility in upstate New York, which utilizes 91% zero-carbon grid power, and the jointly owned 100% nuclear-powered Dauntless facility in Pennsylvania. As of September 30th this year, these two industrial-scale projects had a combined self-mining hash rate of 5.5 exahash per second with approximately 50,000 miners deployed. That is more than triple where we were during the same period last year. Further, that hash rate, even with difficulty reaching all-time highs, resulted in 994 Bitcoins mined during the third quarter. Importantly, our operations are solidly free cash flow positive. Solidly free cash flow positive. During the quarter, there have been many positive headlines for Bitcoin, most notably the anticipation of an imminent approval of the US spot Bitcoin ETF, which has driven a rally in the price of Bitcoin. Concurrently, there has been a steady climb to an all-time high in overall network half-rate, which continues to suppress mining economics. So what does this mean for how we are approaching the balance of 2023 and approaching the halving next year? As energy infrastructure professionals, managing through cycles is fundamental to our approach, and we remain steadfast in our strategy to leverage our resilience low-cost infrastructure to maximize profits, repay debt, and return value to our shareholders. In terms of executing our growth initiatives, the Lake Mariner infrastructure expansion is nearing the final stage of construction. The third building is ready for racks to be installed, and we are advancing other preparatory works so that as miners are delivered, they can be racked and online without delay. Once fully energized, This 43 megawatt expansion will bring the company's total self-mining hash rate capacity to 7.9 exahash per second, or more than 200 megawatts of Bitcoin mining capacity. That translates into a 58% increase in the company's total self-mining hash rate. Importantly, and I cannot emphasize this enough, we will continue to prioritize accretive and capital-efficient infrastructure investment and manage future capital outlays for mining equipment in a responsible manner to remain nimble during challenging markets and avoid unnecessary dilution to our shareholders. To that end, we have strategically structured our miner's purchase agreement in a capital-efficient manner to enable the company the flexibility to monetize deposits and defer payment obligations. Early in the third quarter, we announced the purchase of 18,500 S19JXP Bitcoin mining machines from Bitmain, which are targeted to be delivered next month. To preserve liquidity and avoid excessive dilution, we plan to convert our deposits on this purchase order into roughly 5,500 machines and will host to own the remaining 13,000 machines for Bitmain. at a hosting fee of approximately 7.8 cents per kilowatt hour. The company retains the option to purchase the remaining miners at any time and currently expects to complete purchase of the balance of all 13,000 machines by the fourth quarter 2024. We believe this arrangement not only reflects a strategic relationship with Bitmain, but also underscores a strategy. to prudently invest in infrastructure while opportunistically expanding our mining fleet, thereby maximizing revenue potential to every dollar spent while avoiding unnecessary dilution at depressed share price levels. To reiterate, the fact that we could plug all 18,500 S-19 JXB miners into Building 3 immediately highlights the benefits of owning and prioritizing the development of our data center infrastructure, which then enables us to undertake these types of agreements without the incurrence of meaningful upfront capex. Once these new machines are fully self-deployed, TerraWolf will have one of the most efficient and profitable mining fleets in the sector by combining a fleet-wide efficiency of 25.7 joules per terrage and a realized average power cost of three and a half cents per kilowatt. With that said, I'd like to pass it over to our CFO, Patrick Fleury, to further discuss our financials and results from the quarter.