But does that help address your question?
Josh Siegler: Yes, absolutely it does. Really appreciate the color there, and definitely interested to see kind of what you’re seeing as you progress in building out that infrastructure moving forward. For my second question, I just wanted to flip over to the fundamentals of the Bitcoin mining side. So, your cost of power for the year came in — it performed much better than our expectations and better than your initial guidance, I believe. Obviously, the mix is shifting more towards Lake Mariner, but can you give us any insight as to how you expect that to trend for ’24?
Patrick Fleury: Yes, sure. I mean I think you’ll see we just put out an updated investor deck that everyone can grab off our website. But look, we’re guiding again to that sort of blended $0.035. I would rather keep that guidance and beat with all of you guys. As you said, we delivered $0.032 for 2023. So, look, I think we’re pretty confident — and there’s a slide in our investor deck where you can see historical average price at Lake Mariner and also forward pricing. So, we’re pretty confident that we’ll be in that same range, Josh, going forward. And it’s just — as you know, and as we’re kind of showing quarter-over-quarter, other than a couple of weeks in the winter and a couple of weeks in the summer, it is a beautiful place to mine Bitcoin.
I was actually — Nazar Khan and I were talking the other day, and we learned a stat that I actually had not heard, but I think since temperatures have been — record keeping temperatures have been kept at the Lake Mariner site, I think, since like the 1970s, there’s not one day in the history over that roughly 55-year period where temperatures have been over 100 degrees at our site. So, it is a perfect place with an abundant zero-carbon source of hydroelectricity just down the road to mine Bitcoin.
Josh Siegler: Great. Appreciate that. Thanks, Patrick.
Operator: Our next question is from James Roland with Meme Stock Watch. Please proceed with your question.
James Roland: Hey, how are you? Can you hear me?
Patrick Fleury: Yeah. Hey, James, we can hear you.
James Roland: Hey, how are you? So, I run a forecasting service on miners, all crypto miners in fact, and doing so much digging on Wulf over the past year or so. I made my own personal decision to have my biggest miner position in Wulf as opposed to many others. And on my website, Meme Stock Watch, I offer analysis, fundamental analysis, technical analysis nightly on all miners. And my miner of pick has always been Wulf. So, before I even ask anything, I just wanted to say that this call has been wonderful to listen to. I think the company sounds like they’re in great hands. Now, my question to you guys is, what would you say to investors looking to invest in the crypto miner space and looking for a specific crypto miner that they think can perform well post halving? Obviously, there are a lot of doubts and questions raised about that. So, what would you say to someone that’s looking to invest in a crypto miner? Why should they take Wulf over others?
Paul Prager: First of all, I appreciate your investment in the company. This is Paul. I can try and answer that. Listen, I mentioned in my prepared remarks that we are aware that we trade at a much lower multiple than many in our peer group, significantly lower. And it’s a question we often ask ourselves, why? And I think I’d want to respond to you in a couple of different ways on this. I think, generally, our debt is misunderstood. I’ve repeatedly been out there suggesting it’s a non-event. We have successfully managed it. We paid it down just as we promised we would. But I do believe that the perception that there is debt out there remains a reason why some people haven’t invested yet. But I hope they consider that we’ve repaid $40 million of principal over the last four months.
We’re poised to make another substantial payment of approximately $30 million in the coming weeks. And this has effectively halved our debt load in less than six months. Our very robust performance in the fourth quarter underscores our ability to generate considerable free cash flow, and we have excess liquidity of approximately $20 million on the balance sheet. So, I think we have very strong financial footing, and we’re highly confident in our ability to manage the remaining debt balance. So, I hope future investors would look at that. I think misunderstood negative is really a positive. Two, I think we’ve suffered from a misperception regarding dilution. I have always committed to shareholders that we’re going to be deliberate about using the ATM to fund accretive growth objectives.
We have rapidly scaled the last several quarters. We’re now in a position where accretive investment in our equipment and infrastructure is producing very significant cash flow. And beyond this, I think our dilution tends to be on the very low end of all our peers, one of which right now is implementing a staggering $1.5 billion ATM facility. That would never happen on my watch. The majority of our larger peers seem to me to be far more lifestyle companies for management at the expense of shareholders. But I am troubled by our lower multiple. It doesn’t sit well with me. And I recognize that it will always be a scorecard for future investors. When people look at the facts, I hope they understand that TeraWulf is the best, if not the only investment out there because of three primary things.
