One, profitability. Our cost to mine Bitcoin is among the lowest compared to other publicly-listed mining companies, and we are approximately $25,000 per bitcoin before the halving and $37,000 after halving. And if you listen to what Patrick said, he said, that includes every single possible cost in the company. There’s a reason why many of our competitors don’t disclose their power costs or their SG&A fully loaded, but we do. And the way to think about that today as if Bitcoin is at $65,000, the company is making almost $500,000 a day on our current 12 Bitcoin a day production. That’s real money. The second reason is alignment. I’m one of TeraWulf’s largest shareholders. Our management team is fully invested. So, we and you, we share the same goals.
We’re entirely aligned. My management team is more heavily invested in the company than any of our peers. We win, if you win. We only win, if you win. And lastly, scalability. The scalability of our digital infrastructure is peerless. It’s the backbone of our strategy. It empowers us to optimize efficiency, scale operations and drive profitability. Again, as Patrick mentioned earlier, I think the Bitcoin valuations — or the Bitcoin mining valuations are changing and changing fast, and profitability should be the story. When I look at some of our larger peers, I’m reminded of the old adage, how do you make a small fortune in Bitcoin mining? And I think for many of our competitors, the answer is start with a big fortune. TeraWulf is an entirely different animal.
We make a meaningful profit mining now and we will continue to do so after the halving. That’s why people should invest in Wulf. And I’m really grateful for your question and for your investment in our company.
James Roland: Fantastic answer. Thank you so much for your time.
Operator: Our next question comes from the line of Joe Flynn with Compass Point Research. Please proceed with your question.
Joe Flynn: Hi, guys. I had a question related to paying down the debt post halving. With regard to the $76 million, how should we think about the balance between ultimately investing growth to get to 300 megawatts or paying down debt? And with that, you said by 2024 — or by 2025, but ultimately, do you expect to delever before ultimately getting the 300 megawatts? Thanks.
Patrick Fleury: Yeah. Hey, Joe, it’s Patrick. Good question. So, look, I think primary objective was all of our free cash flow right now. And I just want to make sure we’re distinguishing because we’ve talked a lot about this today. But the company is generating — like Paul said, I mean, we are generating $500,000 to $600,000 of free cash flow a day, okay? So, when we talk about debt pay down and the debt paydown that’s coming, call it, the first week of April, that is all of it from free cash flow generation and profitability. And so, we will continue to be very profitable post halving assuming Bitcoin price around where we are today and we’ll continue to generate a lot of free cash flow. And so, our goal is to extinguish the debt with free cash flow.
So, once that occurs, then I think we can make a decision on, do we use free cash flow to grow accretively? Do we use it for dividends? Do we use it for buybacks? What do we use it for? But right now, the focus is debt repayment.
Joe Flynn: Great. That’s helpful. And then, in regards to the purchasing miners, can you maybe talk about the current market appetite for miners, like are there still opportunities to lock in kind of the lower prices that we’ve seen the 14 to 15 or 15 to 16 joules per terahash? Just like anything you could add there?
Patrick Fleury: Yeah, sure. Look, I think there’s obviously a lot of different — or certainly more so than the last cycle, right, there’s a lot of different OEM options. So look, we would expect as Bitcoin price continues to move up that pricing for miners does move up, but I think there’s a lot of opportunity still remaining out there to get miners at a very attractive price, like around the level that you just referenced. So yeah, I think that’s not a near-term concern of ours.
Joe Flynn: All right. Great. Thanks.
Operator: Thank you. At this time, I would like to pass the floor back over to Mr. Paul Prager for closing remarks.
Paul Prager: I want to thank you again for joining us today. In summary, I believe TeraWulf distinguishes itself through its best-in-class assets, lowest unit economics, ability to scale owned infrastructure and alignment with investors. As a significant investor in TeraWulf myself, I can assure you that we are well aware of and will only pursue the very best interest of the company and its shareholders. Thank you for your trust and support as we strive to build the leading bitcoin mining company.
Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
