TeraWulf (NASDAQ:WULF) stock soared 25% in Wednesday afternoon trading after the bitcoin miner posted mixed Q4 results but emphasized its low-cost position and highlighted its progress in reducing debt.

During its earnings call, management underscored its low-cost production. "We estimate that our cost to mine a bitcoin is among the lowest compared to other publicly-listed bitcoin mining companies at approximately $25,000 per bitcoin before the halving and $37,000 after the halving," said Chairman and CEO Paul Prager. "As the halving approaches in a month's time, we anticipate that our position as the lowest-cost producer of bitcoin will only be further strengthened, underscoring the value of our vertically integrated and sustainable business model."

Furthermore, TeraWulf (WULF) has made significant progress in debt reduction and liquidity. It has repaid $40M of principal in the last four months, bringing its debt balance to $106M. "With liquidity of almost $56M as at the end of February and substantial projected free cash flow for the first quarter, we have the ability to reduce debt even further with an anticipated debt paydown of roughly $30M in early April, which will bring the debt balance to $76M," Prager said.

The company achieved its targeted run rate of operations of 5.5 exahash in mid-2023, said Chief Financial Officer Patrick Fleury.

Q4 GAAP revenue jumped 23% Q/Q to $23.3M, and gross profit of $14.3M rose 34% from the previous quarter.

Q4 GAAP net loss of $10.8M improved from $19.4M in Q3, while non-GAAP adjusted EBITDA surged to $16.4M from $9.0M in the previous quarter.

In its 2024 guidance, "we expect to achieve a marginal cost of production, which includes every single cost in the company of approximately $36,000 per bitcoin post-halving," Fleury said.

Earlier, TeraWulf GAAP EPS of -$0.35 misses by $0.01, revenue of $69.23M beats by $0.27M