TeraWulf Inc.

Good afternoon and welcome to TerraWolf's third quarter 2024 earnings call. At this time all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, John Larkin, Senior Vice President, Director of Investor Relations. Please go ahead, sir.

Thank you, Operator. Good afternoon and welcome to TerraWolf's third quarter earnings call. Joining me today are Chairman and CEO Paul Prager and CFO Patrick Fleury. Before we get started, please note that our remarks today may include forward-looking statements. These statements are subject to risks and uncertainties and actual results may differ materially. During this call, we may use words like anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project, and similar expressions which indicate forward-looking statements. For a more comprehensive discussion of these and other risks, please refer to our filings with the SEC available on sec.gov and in the investor section of our website at terrawolf.com. We will also reference certain non-GAAP financial measures today. Please refer to our 10-K and 10-Q filings and our website for full reconciliations to the most comparable GAAP measures. You can also find our updated investor deck on our website We will start with prepared remarks from Paul and Patrick, followed by a Q&A session. I'll now turn the call over to Paul Prager, our CEO.

Thank you, John, and good afternoon, everyone. We appreciate your joining us today as we discuss our third quarter results. For those new to TerraWolf, we are a leading energy and digital infrastructure company focused on utilizing predominantly zero carbon energy to power our operations. Our management team has over 30 years of experience in energy infrastructure, with a proven track record in financing, designing, building, and operating power and power infrastructure projects. Our flagship Lake Marana facility, located in upstate New York Zone A, is a prime example of a strategy in action. We're situated only 35 miles from Niagara Falls, in a region where over 90% of the energy comes from zero carbon resources. This strategic location, combined with our access to scalable infrastructure and power, abundant land, and reliable water resources, positions us uniquely in the market. We believe this focus on clean, cost-effective energy bodes well for the future. As we look ahead, we're confident in our approach. We see the industry increasingly aligning with our core strengths, namely low-cost sustainable energy, and a commitment to operational excellence. The steps we took this quarter have set a strong foundation as we head into what we believe will be a pivotal year in 2025. Let's talk about what we accomplished in the third quarter. We've been hard at work making substantial progress across our strategic, financial, and operational priorities. To start, I want to highlight a major strategic transaction. In early October, we sold our 25% stake in the Nautilus CryptoMine joint venture to Talent Energy. The transaction, valued at $92 million, delivered a 3.4 times return on our investment. More importantly, this sale has streamlined our operations and gives us the flexibility to focus on expanding our high-performance computing capabilities at Lake Mariner. It's a win-win that sets the stage for what's next. Building on that momentum, we also secured a new long-term ground lease at Lake Mariner. This isn't just a simple lease extension. It's a game changer. We increased our total acreage by nearly 50% from 107 to 157 acres, without any additional cost per acre. And crucially, we now have exclusive rights to up to 750 megawatts of infrastructure capacity and power, which positions us well to attract top-tier, high-speed compute clients looking for scale and reliability, and it's with us now. On the financial side, we had a strong quarter as well. In July, we cleared out legacy debt freeing up capital that we're now deploying into our Wolf compute business. This critical milestone comes at a perfect time as we gear for a significant expansion into the high-speed compute market in 2025. I'd also like to highlight a recent capital raise. In October, we successfully raised $500 million through an oversubscribed convertible bond offering. This influx of capital gives us the flexibility we needed to continue investing in both our Bitcoin mining operations and our growing HPC initiatives. Timing is everything, and this capital positions us well to meet the demands of new tenants who need immediate access to power. We also took steps to return value to our shareholders. Our board approved a $200 million stock buyback program, and we've already repurchased $115 million worth of shares. We paired this with a capped call transaction in the convertible offering to protect against dilution up to a share price of $18.40, underscoring our commitment to driving shareholder value. Operationally, we held our ground despite some tough market conditions, especially following the Bitcoin halving. Our cost to mine came in at approximately $54,000 per Bitcoin in the third quarter, keeping us among the industry's lowest cost producers. This level of efficiency is a key part of our strategy, something we're continually focusing on improving. We're also excited about the upgrades underway in our mining fleet. We've ordered the latest Bitmain S21 Pro miners, which are set to arrive through early Q1 2025. These state-of-the-art machines will boost our efficiency and take our fleet performance to the next level. On the high-speed compute hosting front, we're making steady progress with the construction of our new HPC facilities. We've completed construction of our 2.5 megawatt proof-of-concept project in the third quarter, and the 20 megawatt CB1 and 50 megawatt CB2 data centers are on schedule to be up and running in Q1 and Q2 of next year, respectively. We're in advanced discussions with potential tenants and expect to announce our first HVC hosting partner before the end of the year. Looking ahead, we're doubling down on our core strategy. By locating our operations in regions with abundant, low-cost, predominantly zero-carbon power, we're positioned to thrive in a market where securing clean energy is becoming increasingly challenging. The recent regulatory shifts around data centers at nuclear power plants have underscored just how tough it can be to lock down large-scale carbon-free power. This is why our Lake Marana facility, with its direct grid connection and robust energy infrastructure, is peerless. We believe our energy assets are second to none, and we're laser-focused on leveraging these strengths to continue delivering value for our shareholders. I'll now turn it over to Patrick Fleury, who will walk you through the financials in more detail. Patrick.