Financial Data and Key Metrics Changes - In Q3 2025, GAAP revenues increased by 6% quarter over quarter to $50.6 million from $47.6 million in Q2 2025 [11] - The company recorded a GAAP net loss of $455 million in Q3 2025 compared to a net loss of $18.4 million in Q2 2025 [16] - Non-GAAP adjusted EBITDA improved by 25% quarter over quarter, totaling $18.1 million from $14.5 million in Q2 2025 [17] Business Line Data and Key Metrics Changes - The company recognized $7.2 million of HPC lease revenue at Wolf Den and CV1, with intra-quarter lease commencement resulting in 22.5 megawatts of energized hosting capacity [11] - Self-mined Bitcoin decreased by 22% to 377 Bitcoin in Q3 2025 from 485 Bitcoin in Q2 2025 [12] - Operating expenses increased by 28% quarter over quarter to $4.5 million in Q3 2025 from $3.5 million in Q2 2025 [13] Market Data and Key Metrics Changes - Power prices in upstate New York normalized to $4.7 per kilowatt-hour in Q3 2025, in line with historical levels [12] - The company has evaluated over 150 potential sites for expansion, narrowing it down to a select group that meets strict criteria [10] Company Strategy and Development Direction - TeraWulf signed a 10-year agreement with FluidStack backed by Google, representing average annual revenue of approximately $670 million [4] - The company increased its annual target for new HPC signings from 100-150 megawatts per year to 250-500 megawatts per year [9] - A joint venture with FluidStack and Google was announced to develop the Abernathy HPC campus in Texas, adding 168 megawatts of new HPC capacity [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for high-performance compute, noting significant interest from hyperscalers and cloud companies [66] - The company is focused on disciplined execution and thoughtful expansion to create sustainable long-term value for shareholders [91] - Management highlighted the importance of credit quality in customer relationships and the ongoing dialogue with potential customers [28] Other Important Information - The company closed $3.2 billion in senior secured financing to fully fund the Lake Mariner high-power compute buildout [4] - As of September 30, the company held $712.8 million in cash and restricted cash, with total assets amounting to $2.5 billion [17] Q&A Session Summary Question: Can you talk about the key sites you're close to closing on? - Management indicated they are very close to finalizing at least two additional sites, focusing on regional diversity for long-term agreements [21] Question: Can you reconcile the HPC margins? - Management explained that the HPC margin was about 72%, but adjusting for certain expenses would bring it closer to the previously discussed 85% [23] Question: How is the company thinking about customer diversity? - Management expressed satisfaction with the credit quality of current customers and indicated ongoing discussions with potential new customers [27] Question: Can you clarify the Abernathy joint venture opportunity? - Management detailed the collaborative relationship with FluidStack and Google, emphasizing the strategic fit and potential for future projects [30] Question: What are the penalties for missing delivery timelines? - Management stated that there are significant grace periods in the leases, with minimal penalties for the first 30-90 days [73] Question: How is the company able to add more power pipeline? - Management highlighted long-term relationships and strategic site selection as key factors in securing additional capacity [76]

Revenue and Growth - Total revenue for Q3 2025 reached $50,578,000, a 87% increase from $27,059,000 in Q3 2024[13] - Digital asset revenue was $43,375,000 in Q3 2025, up from $27,059,000 in Q3 2024, representing a 60% year-over-year growth[13] - HPC lease revenue was $7,203,000 in Q3 2025, with no revenue reported in Q3 2024[13] - The company recognized revenue from digital assets mined and hosting services amounting to $125.4 million for the nine months ended September 30, 2025, compared to $104.5 million in 2024[18] - Digital asset mining revenue for Q3 2025 was $43.375 million, a 60.5% increase from $27.059 million in Q3 2024[72] - Digital asset mining segment profit for Q3 2025 was $23.772 million, compared to $10.857 million in Q3 2024, reflecting a 118.5% increase[72] - HPC leasing segment generated $7.203 million in revenue for Q3 2025, with a segment profit of $5.180 million, compared to a loss of $43, indicating a significant turnaround[72] - Total reportable segment profit for Q3 2025 was $28.952 million, up from $10.814 million in Q3 2024[72] Expenses and Losses - Total costs and expenses for Q3 2025 were $75,250,000, compared to $42,770,000 in Q3 2024, reflecting a 76% increase[13] - The net loss for Q3 2025 was $455,050,000, significantly higher than the net loss of $22,733,000 in Q3 2024[13] - Operating loss for the nine months ended September 30, 2025, was $99,890,000, compared to $24,792,000 for the same period in 2024[13] - The company reported a significant increase in depreciation expenses, totaling $26,502,000 in Q3 2025, compared to $15,643,000 in Q3 2024[13] - The company reported a significant increase in stock-based compensation expense, rising to $44.3 million in 2025 from $14.2 million in 2024[18] Assets and Liabilities - Total liabilities as of September 30, 2025, amounted to $2,207,104,000, up from $543,066,000 at the end of 2024[11] - Stockholders' equity as of September 30, 2025, was $247,341,000, slightly up from $244,445,000 at the end of 2024[11] - TeraWulf's total liabilities increased to $867.1 million as of September 30, 2025, compared to $303.1 million as of September 30, 2024[16] - TeraWulf's cash and cash equivalents at the end of the period were $712.8 million, up from $274.1 million at the beginning of the period[19] - The Company maintains cash balances exceeding the FDIC insurance limit by $650.4 million as of September 30, 2025, indicating a strong liquidity position[45] Acquisitions and Investments - The Company acquired 100% of Beowulf Electricity & Data LLC for approximately $54.6 million, including $3.0 million in cash and 5.0 million shares of common stock, with potential contingent payments of up to $32.0 million based on performance milestones[25] - The acquisition of Beowulf E&D was valued at $54.565 million, including $3 million in cash and $19.55 million in equity instruments[75] - Goodwill recorded from the acquisition of Beowulf E&D amounted to $55.5 million, primarily due to the value of the specialized workforce and expected synergies[82] - The Company sold its 25% equity interest in the Nautilus joint venture in October 2024 to reallocate capital for expanding its wholly owned infrastructure[26] Financing and Debt - 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%[139] - The Company issued $500.0 million in 2.75% Convertible Senior Notes due 2030, with net proceeds of approximately $487.1 million after deducting issuance costs[147] - The Company completed a private offering of 1.00% Convertible Senior Notes due 2031, with a total aggregate principal amount of $1.0 billion, net proceeds totaling approximately $975.3 million after deducting $24.7 million in commissions and expenses[155][156] - As of September 30, 2025, the scheduled principal maturities of outstanding debt total $1.5 billion, all due thereafter[169] Operational Developments - TeraWulf's HPC leasing operations commenced in July 2025, with 22.5 MW of capacity energized at the Lake Mariner Campus[24] - The company has entered into long-term datacenter lease agreements to support HPC operations, indicating a strategic expansion into high-performance computing[23] - The Company entered into long-term HPC leases with Fluidstack, expected to commence in 2026, with Google providing a backstop for certain obligations[130] Stock and Shareholder Information - The Company has a total of 439.2 million common shares outstanding as of September 30, 2025, up from 374.5 million shares as of June 30, 2024[16] - The Company repurchased 5,900,000 shares of Common Stock for $33.3 million during the nine months ended September 30, 2025, with a total capacity to repurchase $200.0 million under the Share Repurchase Program[187] - The board of directors approved a charter amendment increasing the number of authorized shares of Common Stock from 600,000,000 to 950,000,000 as of September 30, 2025[182] Future Outlook - The company anticipates future growth in digital asset revenue and HPC lease revenue, although specific projections were not provided[8] - The company plans to focus on developing infrastructure to support High-Performance Computing (HPC) workloads, shifting from its previous bitcoin mining strategy[197]

Core Viewpoint - TeraWulf Inc. reported significant quarterly losses and missed analyst expectations in its third-quarter earnings report, leading to a decline in stock price [1][2]. Financial Performance - The company reported a loss of $1.13 per share, which was significantly higher than the consensus estimate of a loss of $0.05 per share [2]. - Quarterly revenue was reported at $50.57 million, falling short of the Street estimate of $51.7 million [2]. Strategic Developments - TeraWulf's CEO, Paul Prager, highlighted the company's busy third quarter, noting the expansion of partnerships with Fluidstack and Google at Lake Mariner, as well as extending this relationship into the Southwest Power Pool with the Abernathy joint venture [3]. - These partnerships are seen as a demonstration of the strength of TeraWulf's platform and the trust placed in the company by leading technology partners [3]. Future Outlook - TeraWulf reaffirmed its growth strategy, targeting the addition of 250 MW to 500 MW of new contracted capacity annually [4]. - Following the earnings report, TeraWulf's stock price was down 0.36%, trading at $14.25 in extended trading [4].

Business Overview - TeraWulf expects to lease 250-500 MW critical IT load of new HPC capacity per year[6] - The company has contracted 594 MW for HPC Colocation and ~130 MW for Bitcoin Mining[6] - TeraWulf achieved an energy cost of $0047/kWh in 3Q25[6] HPC Expansion - 60 MW is contracted to Core42 (online 2025/2026)[8] - 366 MW is contracted to Fluidstack (expected online 2026)[8] - 168 MW Abernathy JV is expected online in 2026[8] Financial Highlights - TeraWulf announced a $32 billion senior secured green notes offering due 2030 with a 7750% coupon[18, 19] - Gross HPC Lease Revenue reached $72 million in Q3 2025[42] - The company ended Q3 2025 with a hash rate of 116 EH/s, a 53% year-over-year increase[42] Capacity and Pipeline - Total capacity is 1390 MW (gross), including 750 MW at Lake Mariner, 400 MW at Cayuga, and 240 MW at Abernathy[41] - Leased critical capacity is 594 MW, with 60 MW to Core42 in 2025, 366 MW to Fluidstack in 2026, and 168 MW to Abernathy in 2026[41] - The future critical IT capacity pipeline is 750 – 1500 MW[41]

Core Insights - TeraWulf Inc. reported a transformational third quarter, achieving significant commercial, operational, and financial milestones that position the company as a leader in sustainable high-performance computing (HPC) infrastructure [3][11] - The company reaffirmed its growth strategy, targeting 250–500 MW of new contracted capacity annually, supported by a strong pipeline and increasing demand for low-cost, low-carbon compute capacity [1][9] Financial Performance - Revenue for the third quarter increased by 87% year-over-year to $50.6 million, driven by higher average bitcoin prices, expanded mining capacity, and the commencement of HPC lease revenue [12] - The cost of revenue, excluding depreciation, rose by 17% year-over-year to $17.1 million, reflecting increased utilization and modestly higher power costs [12] - As of September 30, 2025, TeraWulf held $712.8 million in cash and cash equivalents, with total outstanding debt of approximately $1.5 billion [13] Operational Expansion - TeraWulf's Lake Mariner Campus has energized 245 MW of Bitcoin-mining capacity and 22.5 MW of HPC capacity, with over 520 MW of long-term HPC leases executed across multiple enterprise and hyperscale customers [4][5] - The Abernathy Joint Venture in Texas is designed for an initial capacity of 240 MW, with potential expansion to 600 MW, backed by a $1.3 billion Google credit enhancement [6][11] Strategic Partnerships - The company signed more than $17 billion in long-term, credit-enhanced customer contracts and completed over $5 billion in long-term financings to support its rapidly expanding platform [3][7] - TeraWulf expanded its partnership with Fluidstack and Google, demonstrating the strength of its platform and the trust placed in its execution capabilities [11] Future Growth Pipeline - TeraWulf signed an 80-year lease at its Cayuga site in Upstate New York, establishing a framework for large-scale HPC deployment beginning in 2027 [8] - The company has several in-house development opportunities approaching realization, further strengthening its long-term growth pipeline [8][11]

Core Viewpoint - TeraWulf Inc. (NASDAQ:WULF) is perceived as a speculative investment in the Bitcoin mining sector, with mixed opinions on its potential compared to other investment opportunities in AI stocks [1]. Company Overview - TeraWulf Inc. develops and operates Bitcoin mining facilities and provides hosting services for digital asset mining [1]. Market Sentiment - Jim Cramer, a notable financial commentator, expressed skepticism about investing in TeraWulf, suggesting that investors should consider directly buying Bitcoin instead [1]. - Cramer highlighted a significant short position in TeraWulf, noting that 31% of the stock is shorted, indicating potential volatility [1]. Investment Comparison - While TeraWulf has potential as an investment, there are AI stocks that are believed to offer greater upside potential and lower downside risk [1].

Core Viewpoint - Jim Cramer expressed a favorable view on Science Applications International Corporation (SAIC), recommending it as an inexpensive stock to buy [1] - Cramer also showed belief in TeraWulf Inc., describing it as a speculative investment [1] Company Updates - Science Applications International Corporation appointed James Reagan as interim CEO, succeeding Toni Townes-Whitley on October 23 [1] - TeraWulf Inc. is scheduled to hold its third-quarter earnings conference call on November 10, expecting a quarterly loss of 5 cents per share, consistent with the previous year's loss, and projected revenue of $50.64 million, a significant increase from $27.06 million a year earlier [1] Stock Performance - SAIC shares decreased by 2.5%, closing at $91.41 [3] - TeraWulf shares increased by 3.9%, closing at $16.10 [3]

Core Insights - TeraWulf's WULF Compute segment has experienced significant growth, with over 200% upside since the announcement of the first Fluidstack deal in August [1] - The recent extension of the Mandela has further contributed to the positive momentum in the cryptocurrency space [1] Company Performance - TeraWulf has seen a substantial increase in its stock value, indicating strong market interest and investor confidence [1] Industry Trends - The cryptocurrency market continues to attract attention, with increasing engagement from traders and enthusiasts, highlighting a growing trend in crypto investments [1]

Core Insights - TeraWulf Inc. (NASDAQ:WULF) is recognized as one of the 12 best-performing stocks over the last three months, with Oppenheimer initiating coverage and assigning an Outperform rating with a price target of $20 [1] - The company is focused on becoming a high-performance computing (HPC) AI infrastructure provider, leveraging its high-quality land, low-cost renewable electricity, and fiber networks to secure contracts with major AI clients [2][4] Industry Demand - Demand for AI infrastructure has accelerated, with expectations of an 18% annual growth in data center demand over the next five years, indicating a significant market opportunity [3] - There is currently a 20% shortage in capacity, equating to approximately 15 gigawatts, highlighting the urgent need for infrastructure development in the AI sector [3] Company Capacity - TeraWulf Inc. has a total of 1.2 gigawatts of space and power inventory, with contracts for over 400 megawatts of capacity and 250 megawatts dedicated to Bitcoin mining that can be converted for other uses [4] - The company specializes in developing, owning, and operating industrial-scale data center infrastructure in the U.S. specifically designed for Bitcoin mining and HPC hosting [4]

Core Scientific and CoreWeave Acquisition - Core Scientific shareholders voted against the acquisition offer from CoreWeave, which was anticipated to be a significant data-center M&A deal in the mining sector [2] - The rejection of the deal alters the investment landscape by returning hundreds of megawatts back to the market for companies like Microsoft and Oracle [2] CleanSpark's AI Expansion - CleanSpark announced the acquisition of a new site in Texas with a 385 MW power pipeline, indicating a shift towards integrating AI and high-performance computing (HPC) workloads alongside traditional mining [4] - The stock of CleanSpark has increased nearly 100% since July 2025, following the market's anticipation of the use of its power pipeline for AI [5] TeraWulf's Long-term AI Hosting Agreement - TeraWulf signed a 25-year AI hosting deal with FluidStack, marking one of the longest contracts between a Bitcoin miner and an AI hosting firm, which enhances long-term revenue visibility [6] - This agreement reflects the industry's pivot towards high-margin compute workloads and TeraWulf's focus on the 'powershell' model for building AI factories [6] Global Hashrate Trends - The global hashrate has surged past 1.1 Zettahash, with significant contributions from China and Russia, despite Western miners potentially slipping in their market position [1][7] - The expansion of hashrate in these countries is occurring at a faster pace than expected, with many U.S. miners halting machine purchases to pivot towards AI [7][8]