Core Points - TeraWulf Inc. has rescheduled its second quarter 2025 investor conference call to August 14, 2025, at 8:00 a.m. ET [1] - A supplemental investor presentation covering second quarter 2025 results and recent developments will be available prior to the call [2] - TeraWulf focuses on environmentally sustainable, industrial-scale data center infrastructure in the U.S., specifically for high-performance computing (HPC) hosting and bitcoin mining [4] Conference Call Information - Participants are encouraged to log on or dial in approximately 5 minutes before the call begins [3] - The call can be accessed via webcast or by dialing specific numbers provided for U.S. and international participants [6] Replay Information - The replay of the conference call will be available until August 28, 2025, at 11:59 p.m. ET [6]

PART I — FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=6&type=section&id=ITEM%201.%20Financial%20Statements%20%28Unaudited%29) TeraWulf reported increased revenue but a significantly widened net loss for H1 2025, primarily due to higher costs, while total assets grew and cash decreased [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $869.4 million as of June 30, 2025, while cash decreased and total liabilities rose Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $89,993 | $274,065 | | Property, plant and equipment, net | $604,760 | $411,869 | | Goodwill | $55,457 | $0 | | **Total Assets** | **$869,408** | **$787,511** | | **Liabilities** | | | | Total current liabilities | $151,304 | $51,845 | | Convertible notes | $488,716 | $487,502 | | Deferred rent liability | $90,000 | $0 | | **Total Liabilities** | **$695,076** | **$543,066** | | **Total stockholders' equity** | **$174,332** | **$244,445** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue increased for H1 2025, but net loss significantly widened, primarily due to higher cost of revenue and increased SG&A expenses Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $47,636 | $35,574 | $82,041 | $78,007 | | Cost of revenue | $22,094 | $13,918 | $46,647 | $28,326 | | Selling, general and administrative expenses | $9,996 | $9,113 | $56,569 | $21,402 | | Operating loss | $(15,590) | $(6,765) | $(75,218) | $(9,081) | | Net loss | $(18,370) | $(10,876) | $(79,788) | $(20,489) | | Loss per common share (Basic and diluted) | $(0.05) | $(0.03) | $(0.21) | $(0.07) | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased for H1 2025, primarily due to net loss and treasury stock repurchases - Key activities impacting stockholders' equity in the first six months of 2025 include a **$79.8 million net loss**, **$33.3 million in treasury stock repurchases**, **$19.6 million in common stock issued** for a business acquisition, and **$40.0 million in stock-based compensation**[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by $182.6 million for H1 2025, driven by lower operating cash flow and increased investing activities Condensed Consolidated Statements of Cash Flows Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,677 | $39,227 | | Net cash used in investing activities | $(132,096) | $(93,579) | | Net cash (used in) provided by financing activities | $(52,228) | $104,022 | | **Net change in cash and cash equivalents** | **$(182,647)** | **$49,670** | - A major change in cash flow presentation occurred: proceeds from the sale of digital currency (**$82.4 million**) are now classified as an investing activity in 2025, whereas they were an operating activity (**$97.6 million**) in 2024. This is because the company no longer immediately converts bitcoin to cash following a debt repayment in July 2024[20](index=20&type=chunk)[54](index=54&type=chunk)[219](index=219&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business, Beowulf E&D acquisition, digital currency fair value accounting, debt, and new HPC leases - On May 21, 2025, the Company acquired 100% of Beowulf E&D for total consideration of approximately **$54.6 million**, which included cash, common stock, and contingent payments. The acquisition resulted in the recognition of **$55.5 million** in goodwill[28](index=28&type=chunk)[71](index=71&type=chunk)[79](index=79&type=chunk) - The company elected to early adopt ASU 2023-08 effective January 1, 2024, which requires digital currency to be measured at fair value with changes recognized in net income[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - In October 2024, the company sold its 25% equity interest in the Nautilus joint venture for total consideration of **$102.1 million**[29](index=29&type=chunk)[136](index=136&type=chunk) - The company entered into long-term HPC lease agreements and received **$90.0 million** in prepaid rent during the first six months of 2025[41](index=41&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) - In October 2024, the company completed a private offering of **$500.0 million** of 2.75% Convertible Senior Notes due 2030[123](index=123&type=chunk)[124](index=124&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's dual strategy in bitcoin mining and HPC, noting revenue growth offset by increased costs and reduced liquidity [Overview and Business Strategy](index=37&type=section&id=Overview%20and%20Business%20Strategy) TeraWulf's strategy focuses on vertically integrated bitcoin mining and HPC hosting, leveraging its Lake Mariner Facility and recent acquisition - The company's strategy is a dual focus on bitcoin mining and expanding into HPC hosting to capitalize on growing demand for AI and cloud computing[171](index=171&type=chunk)[172](index=172&type=chunk) - A key strategic development is the signing of multi-year data center lease agreements with Core42 for **72.5 MW** of HPC hosting capacity at the Lake Mariner Facility[173](index=173&type=chunk) - The acquisition of Beowulf E&D on May 21, 2025, vertically integrates a team of **94 employees** with expertise in power generation and electrical infrastructure, supporting the company's growth strategy[165](index=165&type=chunk) [Facilities and Operations](index=38&type=section&id=Facilities%20and%20Operations) The Lake Mariner Facility has 245 MW bitcoin mining and 72.5 MW HPC capacity; operational hashrate was 12.2 EH/s Operational Hashrate and Efficiency | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Global hashrate (EH/s) | 843.0 | 566.0 | | TeraWulf operational hashrate (EH/s) | 12.2 | 8.0 | | TeraWulf percentage of global hashrate | 1.4% | 1.4% | | Miner efficiency (j/th) | 17.7 | 23.2 | Cost to Mine One Bitcoin | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Cost to mine one bitcoin | $45,608 | $22,994 | $54,494 | $18,506 | | Value of each bitcoin mined | $98,219 | $65,984 | $95,730 | $58,622 | | Cost per kWh | $0.053 | $0.037 | $0.065 | $0.039 | - The company recorded **$3.1 million** and **$5.9 million** from demand response programs in the three and six months ended June 30, 2025, respectively, which are treated as a reduction in cost of revenue[188](index=188&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Revenue increased in H1 2025 due to higher bitcoin prices, but cost of revenue and SG&A surged, leading to a wider operating loss - Revenue increased in Q2 and H1 2025 due to higher average bitcoin prices, despite mining fewer bitcoins (**857** in H1 2025 vs. **1,750** in H1 2024) because of the April 2024 halving and increased network difficulty[197](index=197&type=chunk) - Cost of revenue for H1 2025 increased by **$18.3 million** year-over-year, driven by higher power expenses from expanded mining capacity and higher realized power prices[199](index=199&type=chunk) - Selling, general and administrative expenses for H1 2025 increased by **$37.6 million** year-over-year, mainly due to a **$28.2 million** increase in stock-based compensation, **$1.5 million** in acquisition costs, and higher employee-related expenses[202](index=202&type=chunk) - Depreciation expense increased by **$5.2 million** in H1 2025 compared to H1 2024 due to new infrastructure placed in service[204](index=204&type=chunk) [Non-GAAP Measure and Liquidity](index=45&type=section&id=Non-GAAP%20Measure%20and%20Liquidity) The company reported Adjusted EBITDA of $14.5 million for Q2 2025; liquidity tightened, with cash decreasing to $90.0 million due to capital expenditures Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(18,370) | $(10,876) | $(79,788) | $(20,489) | | **Non-GAAP Adjusted EBITDA** | **$14,531** | **$19,526** | **$9,836** | **$51,503** | - Cash and cash equivalents decreased by **$182.6 million** during the first six months of 2025, primarily due to significant investments in plant and equipment (**$213.6 million**) and share repurchases (**$33.3 million**)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) - As of June 30, 2025, the company had cash of **$90.0 million** and a working capital deficit of **$52.2 million**[222](index=222&type=chunk) [Critical Accounting Estimates](index=47&type=section&id=Critical%20Accounting%20Estimates) Management highlights critical accounting estimates including fair value of digital currency, asset impairment, stock-based compensation, and business combinations - Key estimates include fair value of digital currency, impairment of long-lived assets, stock-based compensation, income taxes, and accounting for business combinations and goodwill[223](index=223&type=chunk)[225](index=225&type=chunk)[227](index=227&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are bitcoin price and power cost, with a 10% change impacting H1 2025 net loss by $8.2 million and $4.7 million respectively - A **10%** change in the price of bitcoin would have impacted H1 2025 net loss by approximately **$8.2 million**[236](index=236&type=chunk) - A **10%** change in power prices would have impacted H1 2025 net loss by approximately **$4.7 million**[236](index=236&type=chunk) [Controls and Procedures](index=50&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Management concluded that disclosure controls and procedures were effective as of the end of the period[237](index=237&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[238](index=238&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=ITEM%201.%20Legal%20Proceedings) The company was not subject to any material pending legal proceedings during the reporting period - As of the reporting date, TeraWulf was not involved in any material legal proceedings[240](index=240&type=chunk) [Risk Factors](index=51&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the risk factors from the Annual Report on Form 10-K have been reported - No material changes to the risk factors from the Annual Report on Form 10-K have been reported[242](index=242&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%2E) The company's $200.0 million share repurchase program had no repurchases in Q2 2025, with the full amount available - The company did not repurchase any shares of its common stock during the second quarter of 2025[244](index=244&type=chunk) - As of June 30, 2025, the maximum value of shares that may yet be purchased under the program is **$200.0 million**[243](index=243&type=chunk)[244](index=244&type=chunk) [Defaults Upon Senior Securities](index=51&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities%2E) The company reported no defaults upon senior securities during the period - The company reported no defaults upon senior securities[245](index=245&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures%2E) The company reported no mine safety disclosures during the period - The company reported no mine safety disclosures[246](index=246&type=chunk) [Other Information](index=52&type=section&id=ITEM%205.%20Other%20Information%2E) The company reported no other information under this item - The company reported no other information under this item[247](index=247&type=chunk) [Exhibits](index=52&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including agreements and officer certifications

Company Performance - TeraWulf Inc. reported a quarterly loss of $0.05 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, and compared to a loss of $0.03 per share a year ago, indicating a negative earnings surprise of -25.00% [1] - The company posted revenues of $47.64 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 6.30%, and showing an increase from year-ago revenues of $35.57 million [2] - Over the last four quarters, TeraWulf has not surpassed consensus EPS estimates, and has topped consensus revenue estimates two times [2] Stock Outlook - TeraWulf shares have declined approximately 12.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $52.89 million, and for the current fiscal year, it is -$0.17 on revenues of $196.75 million [7] Industry Context - The Financial - Miscellaneous Services industry, to which TeraWulf belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of TeraWulf's stock may be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

[TeraWulf Second Quarter 2025 Results](index=1&type=section&id=TeraWulf%20Second%20Quarter%202025%20Results) [Operational and Financial Highlights](index=1&type=section&id=Operational%20and%20Financial%20Highlights) The company's revenue grew 34% YoY to $47.6 million, while Adjusted EBITDA decreased due to the halving event and higher power costs - The company is on schedule to deliver **72.5 MW** of gross HPC hosting infrastructure to Core42 in 2025 and is targeting 200–250 MW operational by year-end 2026[2](index=2&type=chunk) - The decrease in self-mined bitcoin and increase in power cost per bitcoin were primarily attributed to the **April 2024 halving event**, rising network difficulty, and short-term power price volatility[7](index=7&type=chunk) Q2 2025 vs Q2 2024 Key Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **GAAP Revenue** | $47.6M | $35.6M | +33.7% | | **Adjusted EBITDA** | $14.5M | $19.5M | -25.6% | | **BTC Mining Capacity (EH/s)** | 12.8 | 8.8 | +45.5% | | **Bitcoin Self-Mined** | 485 | 699 | -30.6% | | **Power Cost per Bitcoin** | $45,555 | $22,954 | +98.5% | [Management Commentary](index=2&type=section&id=Management%20Commentary) Management emphasized its dual strategy of developing digital infrastructure for HPC hosting and proprietary Bitcoin mining - The company is executing a strategy to develop scalable digital infrastructure for both **HPC hosting and Bitcoin mining**[9](index=9&type=chunk) - Significant progress has been made on the **72.5 MW HPC capacity** for Core42, with revenues expected to begin in **Q3 2025**[9](index=9&type=chunk) - TeraWulf has secured interconnection approval to draw **500 MW** from the grid at Lake Mariner, with pending approvals to reach up to **750 MW**, positioning the company to meet strong demand[9](index=9&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) Revenue grew 34% to $47.6 million, while higher costs led to an increased net loss of $18.4 million for the quarter - The **34% increase in revenue** was driven by a higher average bitcoin price and expanded mining capacity[10](index=10&type=chunk) - The **59% increase in cost of revenue** was attributed to greater infrastructure utilization and slightly higher power costs in Upstate New York[10](index=10&type=chunk) Q2 2025 vs Q2 2024 Income Statement Highlights | Metric ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Revenue** | $47.6 | $35.6 | | **Cost of Revenue (excl. depr.)** | $22.1 | $13.9 | | **Operating Loss** | $(15.6) | $(6.8) | | **Net Loss** | $(18.4) | $(10.9) | [Financial Position and Liquidity](index=3&type=section&id=Financial%20Position%20and%20Liquidity) The company held $90.0 million in liquid assets against approximately $500.0 million in total outstanding debt as of June 30, 2025 - As of August 6, 2025, TeraWulf had **391,926,373 shares** of common stock outstanding[12](index=12&type=chunk) Liquidity and Capitalization as of June 30, 2025 | Item | Amount | | :--- | :--- | | Cash, Cash Equivalents & Bitcoin | $90.0 million | | Total Outstanding Debt | ~$500.0 million | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated balance sheets, statements of operations, and statements of cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $869.4 million, while total stockholders' equity declined to $174.3 million from year-end 2024 Balance Sheet Comparison ($ in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $89,993 | $274,065 | | Property, plant and equipment, net | $604,760 | $411,869 | | **Total Assets** | **$869,408** | **$787,511** | | Total current liabilities | $151,304 | $51,845 | | Convertible notes | $488,716 | $487,502 | | **Total Liabilities** | **$695,076** | **$543,066** | | **Total Stockholders' Equity** | **$174,332** | **$244,445** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net loss of $18.4 million, or ($0.05) per share, on revenues of $47.6 million for the quarter Q2 Statement of Operations Summary ($ in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $47,636 | $35,574 | | **Total costs and expenses** | $63,226 | $42,339 | | **Operating loss** | $(15,590) | $(6,765) | | **Net loss** | $(18,370) | $(10,876) | | **Loss per common share** | $(0.05) | $(0.03) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $1.7 million, while investing and financing activities resulted in a net cash decrease of $182.6 million Cash Flow Summary for Six Months Ended June 30, 2025 ($ in thousands) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash provided by operating activities | $1,677 | | Net cash used in investing activities | $(132,096) | | Net cash used in financing activities | $(52,228) | | **Net change in cash and cash equivalents** | **$(182,647)** | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) The company reported Adjusted EBITDA of $14.5 million, a decrease from $19.5 million in the prior-year quarter - The company defines non-GAAP **"Adjusted EBITDA"** as net loss adjusted for items including interest, taxes, depreciation, and other non-core items to allow for more meaningful comparisons of its core business[26](index=26&type=chunk)[27](index=27&type=chunk) Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA ($ in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net loss** | $(18,370) | $(10,876) | | Adjustments (Interest, Depreciation, etc.) | $32,901 | $30,402 | | **Non-GAAP Adjusted EBITDA** | **$14,531** | **$19,526** |

Core Insights - TeraWulf is on track to deliver 72.5 MW of HPC hosting infrastructure to Core42 by 2025 and aims to secure 200-250 MW operational by the end of 2026 [1][6] - The company's Bitcoin mining capacity increased by 45.5% year-over-year to 12.8 EH/s [1][7] Financial Performance - Revenue for Q2 2025 was $47.6 million, a 34% increase from $35.6 million in Q2 2024 [7][10] - Cost of revenue (excluding depreciation) rose to $22.1 million, up 59% from $13.9 million in Q2 2024, resulting in a cost of revenue as a percentage of revenue of 46.4% compared to 39.1% in the previous year [3][10] - Self-mined Bitcoin decreased to 485 from 699 in Q2 2024, with the total value of self-mined Bitcoin at $47.6 million compared to $46.1 million in the same quarter last year [8][10] - Power cost per Bitcoin self-mined increased significantly to $45,555 from $22,954 in Q2 2024 [8] Operational Highlights - TeraWulf's operational hashrate reached 12.2 EH/s, up from 8.0 EH/s in Q2 2024 [5] - The company is in advanced discussions to expand HPC hosting and has secured interconnection approval to draw 500 MW from the grid, with plans to increase this to 750 MW [9] Management Commentary - The CEO emphasized the company's commitment to developing scalable, sustainable digital infrastructure and highlighted strong demand from enterprise and hyperscale customers for low-cost, zero-carbon compute infrastructure [6][9] - The CFO noted that revenue from HPC hosting is expected to begin in Q3 2025, marking a significant inflection point for the company's financial profile [9] Liquidity and Capital Resources - As of June 30, 2025, TeraWulf held $90 million in cash and cash equivalents, with total outstanding debt of approximately $500 million [11] - The company reported a net loss of $18.4 million for Q2 2025, compared to a net loss of $10.9 million in Q2 2024 [20]

Core Viewpoint - TeraWulf Inc. (WULF) is expected to report a year-over-year decline in earnings despite higher revenues, with the market closely watching how actual results compare to estimates [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to be released on August 8, with a consensus estimate of a quarterly loss of $0.04 per share, reflecting a year-over-year change of -33.3% [3][12]. - Revenues are projected to be $44.81 million, representing a 26% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - TeraWulf's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +45.46%, suggesting a bullish outlook from analysts [11]. Earnings Surprise History - TeraWulf has not been able to beat consensus EPS estimates in the last four quarters, with the most recent quarter showing a surprise of -128.57% [12][13]. Industry Comparison - In the Zacks Financial - Miscellaneous Services industry, Burford Capital Limited (BUR) is expected to post earnings of $0.33 per share for the same quarter, indicating a year-over-year change of +37.5% [17]. - Burford Capital's revenue is expected to be $160.24 million, up 0.4% from the previous year, but it has a negative Earnings ESP of -17.51% and a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [18][19].

Core Viewpoint - TeraWulf Inc. is set to hold its earnings conference call for the second quarter of 2025 on August 8, 2025, at 8:00 a.m. Eastern Time, with a press release detailing the results to be issued prior to the call [1]. Company Overview - TeraWulf develops, owns, and operates environmentally sustainable data center infrastructure in the U.S., specifically for Bitcoin mining and high-performance computing [3]. - The company operates the Lake Mariner facility located on a retired coal plant site in Western New York and generates revenue primarily through Bitcoin mining, utilizing predominantly zero-carbon energy sources such as nuclear and hydroelectric power [3]. - TeraWulf is committed to environmental, social, and governance (ESG) principles, aiming to deliver industry-leading economics in mining and data center operations at an industrial scale [3]. Conference Call Information - The earnings conference call is scheduled for August 8, 2025, at 8:00 a.m. ET, with participants advised to log in or dial in approximately 5 minutes before the start [2]. - Access ID for the call is 13755187, and participants can join via a dial-in number or a webcast link provided [2]. Replay Information - A replay of the conference call will be available until August 22, 2025, at 11:59 PM ET, with specific dial-in numbers and access ID provided for listeners [3].

Group 1 - TeraWulf Inc. (WULF) shares have increased by 18% over the past four weeks, closing at $5.11, with a mean price target of $7.32 indicating a potential upside of 43.3% [1] - The mean estimate consists of 11 short-term price targets with a standard deviation of $1.72, where the lowest estimate is $4.00 (21.7% decline) and the highest is $10.00 (95.7% increase) [2] - Analysts show strong agreement on WULF's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][11] Group 2 - Recent revisions of earnings estimates for WULF have been positive, with two estimates moving higher in the last 30 days and the Zacks Consensus Estimate increasing by 4.9% [12] - WULF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting the extent of gains, they can provide a directional guide for price movement [14]

Core Viewpoint - TeraWulf Inc. has announced the acquisition of Beowulf Electricity & Data LLC, which aims to simplify its corporate structure and enhance operational efficiency through vertical integration and resource consolidation [1][2][3]. Transaction Overview - The total consideration for the acquisition is approximately $52.4 million, comprising $3 million in cash and 5 million shares of TeraWulf common stock [2]. - The agreement includes contingent cash payments of up to $19 million and additional common stock worth up to $13 million, contingent on achieving key milestones [2]. - Following the acquisition, 94 employees from Beowulf E&D have transitioned to TeraWulf, and an existing services agreement with Beowulf E&D has been terminated [2]. Strategic Rationale - The acquisition consolidates operations under a unified structure, enhancing transparency, governance, and strategic flexibility for long-term growth [3]. - The transaction was approved by an independent committee of the Board of Directors, ensuring fairness and compliance [3]. - The integration of Beowulf E&D's expertise in power generation supports TeraWulf's growth strategy, particularly in high-power compute operations [6]. Company Overview - TeraWulf develops and operates sustainable data center infrastructure in the U.S., primarily for bitcoin mining and high-performance computing (HPC) workloads [4]. - The company generates revenue mainly through bitcoin mining, utilizing predominantly zero-carbon energy sources [4]. - TeraWulf is committed to environmental, social, and governance (ESG) principles, aiming for industry-leading economics in its operations [4]. Strengthened Vertical Integration - The acquisition enhances TeraWulf's access to capital markets by simplifying its corporate structure, improving transparency for debt investors [6]. - The elimination of a related-party structure broadens engagement with institutional investors, who may have been previously constrained by such disclosures [6].

Core Insights - TeraWulf's shares dropped over 9% following a disappointing quarterly earnings report, contrasting with the relatively stable performance of the S&P 500 [1] Financial Performance - For the first quarter of 2025, TeraWulf reported revenue of $34.4 million, down from $42.4 million in the first quarter of 2024, with Bitcoin mined decreasing from 1,051 to 372 [2] - The net loss for the quarter increased significantly to over $61 million, equating to $0.16 per share, compared to a loss of less than $15 million in the previous year [2] Analyst Expectations - TeraWulf failed to meet analyst expectations, which anticipated revenue of slightly more than $46 million and an adjusted net loss of only $0.04 per share [3] Management Commentary - TeraWulf's CFO highlighted the company's strong cash position, stating they had $219.6 million in cash and Bitcoin holdings at the end of the quarter, indicating they are well-capitalized for near-term growth [4] - Despite recent gains in cryptocurrencies, the management's optimistic outlook did not alleviate investor concerns regarding the company's deteriorating fundamentals [4]