Retail Supplier Announces Bitcoin Mining Joint Venture

Talen Energy Corporation ("Talen" or "the Company"), which continues to act as a retail electric supplier on a scaled back basis, announced today that, as part of its previously reported, "strategic transformation to a renewable energy and digital infrastructure growth platform," it has entered into a Joint Venture with TeraWulf Inc. ("TeraWulf"), a U.S.-based bitcoin mining company, to develop up to 300 Megawatts of zero-carbon bitcoin mining capacity.

Phase I of the Nautilus Cryptomine facility is a 180-megawatt bitcoin mining facility which will be built on Talen's digital infrastructure campus adjacent to its Susquehanna nuclear power generation station ("Susquehanna") in Berwick, Pennsylvania. Nautilus Cryptomine will be powered via a direct interconnection to Susquehanna. The Nautilus Cryptomine facility is located "behind the meter" directly connected to Susquehanna which the companies said, "will provide Nautilus Cryptomine with one of the lowest electricity costs among publicly traded bitcoin mining peers in the United States."

The Joint Venture is expected to invest approximately $350-400 million in Phase I of the zero-carbon bitcoin mining operation with an aggregate anticipated hash rate that will exceed 5 exahash per second. Given its 50% interest in Nautilus Cryptomine, affiliates of Talen anticipate investing approximately $175-200 million of cash contributions into the Joint Venture, including contingency and other variables.

Talen anticipates funding its share of the Joint Venture commitment from its current liquidity and from third party debt and equity sources.

The commercial operation date for Phase I is currently anticipated in mid-year 2022.