TeraWulf Inc., a company primarily powered by zero-carbon energy, has reported mining 329 bitcoins in September and a total of 989 bitcoins throughout the third quarter of 2023. This achievement comes despite a 2.7% increase in network difficulty, according to Sean Farrell, the firm's Senior Vice President of Operations.
The third quarter marked TeraWulf's first full quarter with an operational capacity of 5.5 EH/s. The mining operations generated approximately $6.5 million in free cash flow, which the company has used for debt repayment. According to InvestingPro, this strategic move is expected to decrease future interest payments and the overall cost of Bitcoin mining. The company's low earnings quality, with free cash flow trailing net income, is a point of concern raised in the InvestingPro Tips.
In addition to its mining success, TeraWulf has been focusing on optimizing its operating performance at the Lake Mariner and Nautilus facilities. The firm has enhanced minor repairs, although this was somewhat offset by facility downtime due to participation in demand response programs. On average, the daily bitcoin output for the company stood at 11 bitcoins, each costing $9.9k to mine.
InvestingPro Data reveals that TeraWulf has a market cap of $2430M USD and a P/E ratio of 13.53. The company's revenue growth has been slowing down recently, a matter that is corroborated by the InvestingPro Tips. Despite this, the company remains profitable with a gross profit margin of 22.93% and a return on assets of 6.13%.
Patrick Fleury, TeraWulf's Chief Financial Officer, reiterated the company's goals: maximizing profitability, reducing debt, executing growth opportunities, and returning value to shareholders. These objectives are closely aligned with the company's recent performance and strategic decisions made during this period. In line with these objectives, InvestingPro Tips highlights that the company's strong earnings should allow management to continue dividend payments, a practice it has maintained for 37 consecutive years.
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