- TeraWulf Inc WULF successfully restructured its planned purchase agreement with Bitmain Technologies Limited.
- Now TeraWulf can significantly expand its self-mining capacity and fully utilize 160 MW of its available mining capacity expected in Q1 2023.
- TeraWulf raised new capital to repay the convertible promissory note (the "Advance") with YA II PN, Ltd. ("Yorkville") in full and expects to simultaneously issue a notice to Yorkville to terminate the accompanying standby equity purchase agreement ("SEPA").
- The parties agreed to cancel TeraWulf's December 2022 batch of 3,000 S19 XP Pro bitcoin mining machines and, together with the application of remaining unused deposits with Bitmain, replace that batch with 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, TeraWulf boosted its estimated Q1 2023 self-mining target to 44,450 owned miners deployed (5.0 EH/s) from its prior estimate of 36,250 owned miners (4.3 EH/s).
- "With this recent agreement, the Company's self-mining hash rate will increase by 23% and produce Bitcoin at an all-in cost to mine of approximately $6,300 per coin1," stated Nazar Khan, Co-founder and Chief Operating Officer of TeraWulf.
- TeraWulf raised $10 million of new capital comprised of a $6.7 million registered direct offering of common stock in addition to the previous issuance of $3.4 million of convertible promissory notes to some of its largest shareholders.
- TeraWulf plans to use the offering proceeds to repay the Advance with Yorkville and terminate the accompanying SEPA entered into on June 2, 2022, and for other general corporate purposes.
- TeraWulf held $138.5 million of the term loan as of September 30.
- Price Action: WULF shares traded lower by 32.60% at $0.82 on the last check Monday.
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