HPC Infrastructure and Capacity - TeraWulf expects to deploy 150-200 MW of new HPC capacity per year[4] - The company has 1,150 MW of scalable capacity across purpose-built sites[4] - 800-850 MW of capacity is available for future contracts across two sites[5,9] - Cayuga site unlocks 400 MW of scalable HPC capacity[11] - Total capacity is 1,150 MW (gross), with 750 MW at Lake Mariner and 400 MW at Cayuga[36] Key Contracts and Financial Highlights - TeraWulf has a 10-year, $3.7 billion hyperscale lease with Fluidstack, with Google backstopping $1.8 billion of Fluidstack's lease obligations[11,12] - The company has a contract with Core42 for 72.5 MW, which is expected to be online in 2025[5] - Q2 2025 revenue was $47.6 million, with a non-GAAP adjusted EBITDA of $14.5 million[24] - End of period hash rate reached 12.2 EH/s, representing a 53% increase year-over-year[24] - Bitcoin mined in Q2 2025 totaled 485, implying 5.3 BTC per day, up 29% quarter-over-quarter[24] Financial Position - Cash and cash equivalents totaled $90 million at the end of Q2 2025[24] - Net debt was $410 million, including $500 million in convertible notes issued in October 2024[24] - The company projects a fixed operating cost range of $84–$94 million for 2025[38]

Core Insights - TeraWulf has executed an 80-year ground lease for approximately 183 acres at the Cayuga site in Lansing, New York, aimed at expanding its high-performance computing (HPC) and AI data center hosting capabilities [1][2][3] Group 1: Lease Details - The Cayuga Ground Lease grants TeraWulf exclusive rights to develop up to 400 MW of digital infrastructure capacity, with 138 MW of low-cost, predominantly zero-carbon power expected to be operational by 2026 [2][3] - The lease includes reciprocal purchase and sale options for $100 starting in year 50, indicating a long-term strategic investment [2] Group 2: Infrastructure and Energy Profile - The Cayuga site benefits from existing electrical infrastructure, an industrial-scale water intake system, and redundant fiber connectivity, essential for enterprise-scale computing workloads [2] - Nearly 90% of the electricity generation mix in Upstate New York comes from zero-carbon sources, providing TeraWulf with one of the cleanest energy profiles in the country [3] - Electricity costs at the site average below $0.05 per kilowatt-hour, supporting TeraWulf's low-cost operating model [3] Group 3: Financial Aspects - The transaction involves a consideration of $95 million in TeraWulf common stock and $3 million in cash to Cayuga's parent company, reinforcing alignment between management and shareholders [4] - The deal was approved by an independent committee of the Board of Directors, ensuring governance and fairness in the transaction [4] Group 4: Company Overview - TeraWulf specializes in developing, owning, and operating environmentally sustainable, industrial-scale data center infrastructure in the U.S., focusing on HPC hosting and bitcoin mining [5]

Core Insights - TeraWulf has established itself as a leading provider of hyperscale AI infrastructure through significant agreements with Fluidstack, anchoring approximately $3.7 billion in contracted revenues, with potential to reach $8.7 billion through lease extensions [1][3][12] Contractual Agreements - TeraWulf will provide over 200 MW of critical IT load at its Lake Mariner data center, designed specifically for liquid-cooled AI workloads, with a gross capacity of around 250 MW [2] - The agreements include two five-year extension options, which could increase total contract revenue to approximately $8.7 billion [3][12] Financial Backing and Equity - Google will backstop $1.8 billion of Fluidstack's lease obligations to support project-related debt financing and will receive warrants for approximately 41 million shares of TeraWulf common stock, equating to an approximately 8% equity stake [4][12] Deployment Timeline - The first phase of deployment, approximately 40 MW of critical IT load, is expected to be operational in the first half of 2026, with full deployment of over 200 MW by the end of 2026 [6] Leadership Commentary - TeraWulf's CEO emphasized the significance of this transaction in uniting capital and compute partners to deliver next-generation AI infrastructure powered by predominantly zero-carbon energy [7] - The CTO highlighted the facility's capabilities, including dual 345 kV transmission lines and ultra-low-latency fiber connectivity, tailored for demanding AI workloads [7] Transaction Highlights - The expected site net operating income (NOI) margins are projected at 85%, implying approximately $315 million annually [12] - The total project cost is estimated to be between $8 million and $10 million per MW of critical IT load [12]

Group 1 - The core viewpoint is that TeraWulf Inc. (NASDAQ: WULF) has reported a Q1-25 earnings report that is considered extremely poor, leading to a downgrade of the stock from 'hold' to 'sell' [1] - Long-term investors are advised to generally avoid investing in TeraWulf Inc. due to the negative outlook presented in the earnings report [1] Group 2 - The article reflects a personal opinion of the author, who has a background in media research and focuses on areas such as cryptocurrency, Bitcoin miners, and related equities [1]

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].