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]

Financial Performance - Revenue for Q1 2025 was $34,405,000, a decrease of 18.5% from $42,433,000 in Q1 2024[16] - Total costs and expenses increased significantly to $94,033,000 in Q1 2025, compared to $44,749,000 in Q1 2024, resulting in an operating loss of $59,628,000[16] - Net loss for Q1 2025 was $61,418,000, compared to a net loss of $9,613,000 in Q1 2024, reflecting a substantial increase in losses[16] - Basic and diluted loss per common share for Q1 2025 was $0.16, compared to $0.03 in Q1 2024[16] - Consolidated net loss for the three months ended March 31, 2025, was $61.4 million, compared to a net loss of $9.6 million for the same period in 2024, representing a significant increase in losses[57] Equity and Capital Structure - Total stockholders' equity decreased to $170,375,000 as of March 31, 2025, down from $244,445,000 at the end of 2024[14] - The company reported an increase in additional paid-in capital to $705,897,000 as of March 31, 2025, from $685,261,000 at the end of 2024[14] - The company issued 20 million shares of Common Stock with a fair value of $68.8 million as part of the New Ground Lease transaction[70] - The company has authorized a share repurchase program of up to $200,000,000 through December 31, 2025[112] Cash Flow and Investments - Cash provided by operating activities was $56,487,000 in Q1 2025, a significant increase from $22,846,000 in Q1 2024[18] - Cash used in investing activities was $61,064,000 in Q1 2025, compared to $46,979,000 in Q1 2024[18] - The company repurchased treasury stock costing $33,292,000 during Q1 2025[18] - The company had cash and cash equivalents of $218.2 million as of March 31, 2025, compared to $274.1 million at the end of 2024, indicating a decrease of about 20.4%[39] Operations and Facilities - TeraWulf recorded revenue from mining of $34.4 million for the three months ended March 31, 2025, down from $41.6 million in the same period of 2024, representing a decrease of approximately 17.3%[35] - TeraWulf's Lake Mariner Facility has energized 245 MW of capacity across five buildings, supporting its bitcoin mining operations[24] - The company entered into long-term data center lease agreements for HPC operations, expected to commence throughout 2025 with an initial 10-year term[37] - TeraWulf's bitcoin miner hosting revenue was $0 for the three months ended March 31, 2025, down from $0.8 million in the same period of 2024[36] Tax and Valuation - The effective tax rate for the company was 0% for the three months ended March 31, 2025, primarily due to a valuation allowance against deferred tax assets[77] - As of March 31, 2025, the company recorded a valuation allowance for deferred tax assets, indicating it is more likely than not that these assets will not be realized[78] - The company had no unrecognized tax benefits as of March 31, 2025, and no accrued interest or penalties were recorded during the three months ended March 31, 2025[79] Debt and Financing - The company entered into a Loan, Guarantee and Security Agreement (LGSA) with total Term Loans of $146.0 million at an interest rate of 11.5%[80] - The company issued $500.0 million in 2.75% Convertible Senior Notes due 2030, with net proceeds totaling approximately $487.1 million after deducting issuance costs[87] - During the three months ended March 31, 2024, the company repaid $33.4 million of the principal balance of the Term Loans, including voluntary prepayments of $18.6 million[82] Stock and Compensation - Stock-based compensation expense for the three months ended March 31, 2025, was $38,700,000, compared to $6,900,000 for the same period in 2024[114] - As of March 31, 2025, there were 3,163,362 unvested Restricted Stock Units (RSUs) with an average grant date fair value of $4.57[116] - The company recognized $4.2 million of unrecognized compensation cost related to unvested non-employee RSUs, expected to be recognized over a weighted average period of 1.3 years[117] Market and Future Outlook - The company anticipates potential future risks including competition in the cryptocurrency mining industry and the need for additional capital[9] - A 10% increase or decrease in the price of bitcoin would have impacted net loss by approximately $3.4 million for the three months ended March 31, 2025[190] - A 10% increase or decrease in power prices would have affected net loss by approximately $2.5 million during the same period[190]

Five months ago in my prior coverage of the stock, I called TeraWulf (NASDAQ: WULF ) a 'hold' and spent time on the company's pivot to HPC/AI revenue. Though I generally viewed the HPC/AI segment as a necessaryFormer media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. I'm not an investment advisor. I just share what I do with my own capital and why. Outside of Seeking Alpha, I also write the Heretic Speculator newsletter over at Substack.Analyst’s Disclosure: I/we ...

TeraWulf Inc. (WULF) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -128.57%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced a loss of $0.08, delivering a surprise of -100%.Over the last four quarters, the company has not been ...

Financial Data and Key Metrics Changes - In Q1 2025, the company self-mined 372 Bitcoin, averaging approximately 4 Bitcoin per day, which is a 12% decrease from 423 Bitcoin mined in Q4 2024 [20] - GAAP revenues were flat quarter over quarter at $34.4 million in Q1 2025 compared to $35 million in Q4 2024 [21] - GAAP net loss in Q1 2025 was $61.4 million, compared to a net loss of $29.2 million in Q4 2024 [24] - Non-GAAP adjusted EBITDA for Q1 2025 was negative $4.7 million, down from positive $2.5 million in Q4 2024 [24] Business Line Data and Key Metrics Changes - The self-mining hash rate at the Lake Mariner facility reached 12.2 exahash with fleet efficiency at 18 joules per terahash [8] - The company experienced a temporary spike in power prices, which impacted EBITDA, but operations returned to positive EBITDA in April 2025 [9][20] - The company expects to generate revenue from the Wolf Den facility starting in Q2 2025, with additional facilities expected to go live in Q3 and Q4 2025 [10][11] Market Data and Key Metrics Changes - Power prices increased by 37% from $0.59 per kilowatt hour in Q4 2024 to $0.81 per kilowatt hour in Q1 2025, significantly impacting costs [21] - The company anticipates power pricing to normalize to approximately $0.05 per kilowatt hour for Q2 through Q4 2025 [22] Company Strategy and Development Direction - The company aims to lead at the intersection of energy and compute, focusing on sustainable Bitcoin mining and high-performance compute (HPC) hosting [6][7] - The company is pursuing an additional 250 megawatts of capacity at Lake Mariner, bringing the total to 750 megawatts, with plans for further expansion [13][16] - The integration of Beowulf Electricity and Data is being pursued to streamline operations and eliminate related party disclosures [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for HPC and AI workloads, indicating strong interest from enterprises seeking secure, high-density infrastructure [10][81] - The management team remains optimistic about the company's ability to execute and deliver on its commitments, which is expected to enhance customer confidence and drive future growth [50][96] Other Important Information - The company plans to launch a project financing process for the Core 42 build-out, with early feedback from potential lenders being positive [15][27] - The company has authorized a new $200 million share repurchase program, reflecting confidence in its capital position [27] Q&A Session Summary Question: What are the potential cost savings from the integration of Terawulf and Beowulf? - Management indicated that the integration process is rigorous due to its nature as a related party transaction, and the timeline is dependent on independent board approvals [32][34] Question: What are the expectations for build costs for future sites? - Management guided a range of $6 million to $8 million per megawatt for build costs, with potential adjustments based on design changes and tariff impacts [37][40] Question: What is the outlook for EBITDA margins on future capacity? - Management expects EBITDA margins to be around 75% for the first 72.5 megawatts, with higher incremental margins anticipated as additional capacity is added [52][55] Question: What have been the biggest learnings from working with Core 42? - The partnership with Core 42 has provided valuable insights into design specifications and the importance of collaboration in evolving the business [60][66] Question: Will additional capacity be developed before signing new tenants? - Management indicated that site preparation is ongoing, but significant expansion would not occur without signed agreements [73] Question: What is the near-term demand environment for HPC and AI? - Management noted strong demand for power and interest from hyperscalers and enterprises, emphasizing the importance of quality sites [81][84] Question: How does the company plan to combat elevated global hash rates? - Management acknowledged the challenges posed by rising hash rates but emphasized the efficiency of their operations and the focus on high-value deployments in HPC and AI [86][89]

Financial Data and Key Metrics Changes - In Q1 2025, the company self-mined 372 Bitcoin, averaging approximately 4 Bitcoin per day, which is a 12% decrease from 423 Bitcoin mined in Q4 2024 [18] - GAAP revenues were flat quarter over quarter at $34.4 million in Q1 2025 compared to $35 million in Q4 2024 [19] - GAAP net loss in Q1 2025 was $61.4 million, compared to a net loss of $29.2 million in Q4 2024 [22] - Non-GAAP adjusted EBITDA for Q1 2025 was negative $4.7 million, down from positive $2.5 million in Q4 2024 [22] Business Line Data and Key Metrics Changes - The operational capacity of the Bitcoin mining platform at Lake Mariner increased to 245 megawatts, with self-mining hash rates of 12.2 exahash and fleet efficiency of 18 joules per terahash [6] - The high-performance compute (HPC) hosting platform is expected to generate revenues starting in Q2 2025, with three dedicated buildings for the anchor tenant, Core 42, being prioritized for construction [8][9] Market Data and Key Metrics Changes - Power prices experienced a historic spike in January and February 2025, but normalized by March, allowing mining operations to return to positive EBITDA in April [7][20] - The company anticipates power costs to align with historical pricing at Lake Mariner, guiding $0.05 per kilowatt hour for Q2 through Q4 2025 [20] Company Strategy and Development Direction - The company aims to lead at the intersection of energy and compute, focusing on sustainable Bitcoin mining and scalable HPC infrastructure [6] - Plans include requesting an additional 250 megawatts of capacity at Lake Mariner, bringing the total to 750 megawatts, and pursuing expansion opportunities at the Cayuga site [12][15] - The integration of Beowulf Electricity and Data is being pursued to streamline operations and align incentives across the organization [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for HPC and AI workloads, indicating strong interest from enterprises seeking secure, high-density infrastructure [8] - The company is optimistic about future profitability as it expects to benefit from normalized power prices and the operationalization of HPC facilities [20][22] Other Important Information - The company is monitoring the evolving tariff landscape, estimating a 5% to 10% impact on build costs [13] - A new $200 million share repurchase program has been authorized, alongside plans for a $300 million debt raise [25] Q&A Session Summary Question: Integration of Terawulf and Beowulf - Management indicated that the integration process is rigorous due to it being a related party transaction, and they expect it to drive long-term value for shareholders [30][31] Question: Expectations for Build Costs - The company guided build costs to be in the range of $6 million to $8 million per megawatt, with potential adjustments based on design changes [34][35] Question: EBITDA Margins on Future Capacity - Management expects EBITDA margins to be around 75% for the first 72.5 megawatts, with significant cost efficiencies due to the scale of operations [49][50] Question: Learnings from Core 42 Partnership - The partnership with Core 42 has provided valuable insights into design specifications and operational requirements, emphasizing the importance of collaboration [57][62] Question: Future Capacity and Customer Contracts - Management clarified that discussions with Core 42 are progressing well, and energizing CB1 and CB2 will enhance their ability to attract additional customers [90][92] Question: Near-term Demand Environment - Management noted strong near-term demand for power, particularly from enterprises and hyperscalers, with a focus on high-quality sites [76][78]

Operational Highlights - TeraWulf deployed 122 EH/s in Q1 2025[9] - The company mined 372 BTC in Q1 2025, averaging 41 BTC per day[9, 16] - TeraWulf is on track to deliver 60 MW of critical HPC hosting capacity to Core42 in 2025[9] - The company achieved an 18 J/TH fleet efficiency in Q1 2025[13] Financial Performance - Revenue reached $349 million in Q1 2025, a 102% increase year-over-year, with an average value per BTC self-mined of approximately $93k[16] - Non-GAAP Adjusted EBITDA was ($47) million in Q1 2025, down from $319 million in 1Q24 due to various factors[16] - As of March 31, 2025, TeraWulf held $2182 million in cash and cash equivalents, excluding BTC valued at $14 million[12, 16] - Net debt stood at $2818 million as of March 31, 2025, including $500 million in 275% Convertible Notes due 2030[16, 17] - Power cost was $0081/kWh in Q1 2025, a 65% increase year-over-year due to extreme winter weather conditions[16] Strategic Initiatives and Guidance - TeraWulf has a scalable infrastructure with 750 MW of potential capacity for HPC Hosting[3] - The company is targeting 225 MW and 12 EH/s for Q2 – Q4 2025[3] - TeraWulf secured its first data center lease with Core42 for 60 MW of capacity[27] - The company anticipates ~$16 million per MW Base Rent in Year 1 from the Core42 deal, escalating at 3% annually[27]