Core Viewpoint - APLD, CIFR, IREN, and WULF experienced significant stock price increases, with APLD rising over 14%, CIFR over 11%, IREN over 8%, and WULF over 7% [1] Company Performance - APLD saw a stock price increase of more than 14% [1] - CIFR's stock rose by over 11% [1] - IREN's shares increased by more than 8% [1] - WULF experienced a stock price rise of over 7% [1] Industry Trends - The notable increases in stock prices for these companies indicate a positive trend within the industry [1]

Core Viewpoint - Cryptocurrency mining stocks experienced a significant increase in value, indicating a positive market sentiment towards the sector [1] Group 1: Stock Performance - TeraWulf (WULF.US) rose over 6.7% [1] - Cipher Mining (CIFR.US) increased by more than 6% [1] - IREN Ltd (IREN.US) saw a 6% rise [1] - Applied Digital (APLD.US) gained over 5.8% [1]

Core Viewpoint - TeraWulf's stock price dropped by 22% following the last article, but the company achieved a price target of $16.50 as previously rated by the analyst [1]. Company Analysis - TeraWulf's stock performance significantly underperformed the benchmark after the analyst's last article [1]. - The analyst maintains a Buy rating for TeraWulf with a price target of $16.50, which was reached in October [1]. Analyst Background - The analyst has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1]. - The analyst's expertise includes advising on multi-asset strategies, with a strong emphasis on equities and derivatives [1]. - The analyst follows macro trends, EU and US central bank policies, sector rotation, and sentiment dynamics to construct actionable investment strategies [1].

Core Insights - The article emphasizes the author's unique insights and knowledge in stock analysis, aiming to provide contrasting views on their portfolio [1] Group 1 - The analyst expresses a beneficial long position in shares of companies like GOOG and AMZN, indicating confidence in their performance [2] - The analysis is intended for informational purposes, highlighting the importance of conducting personal research before making investment decisions [3] - The article clarifies that past performance does not guarantee future results, underscoring the inherent risks in trading [4]

Core Insights - TeraWulf reported a significant GAAP net loss of $455 million in Q3 2025, a sharp increase from the $18.4 million loss in the previous quarter, with adjusted loss per share at 7 cents, wider than the expected 4 cents loss, and revenues of $50.6 million missing estimates by 1.26% [1][7] Financial Performance - The company experienced a 28% quarter-over-quarter increase in operating expenses, driven by staffing expansions, while selling, general, and administrative expenses rose by 17% [2] - Self-mined Bitcoin production fell by 22% compared to the previous quarter, indicating a strategic shift away from core competencies [2] - The Zacks Consensus Estimate for 2025 net sales is $178.83 million, reflecting a 27.69% growth from the prior year, while the earnings estimate indicates a loss of 90 cents per share, wider than the 19 cents loss reported in 2024 [3] Debt and Capital Structure - TeraWulf's total outstanding debt reached approximately $1.5 billion following a $3.2 billion offering of senior secured notes and a $1.025 billion convertible senior notes offering [4] - The 7.75% interest rate on the senior secured notes results in annual interest payments of about $248 million, which exceeds the company's current revenue run rate [4] Valuation and Market Position - TeraWulf trades at a price-to-sales ratio of 13.26 times, significantly higher than the industry average of 3.18 times, despite ongoing losses and execution challenges [5][7] - Competitors like Riot Platforms, Cipher Mining, and CleanSpark are executing more disciplined strategies and maintaining stronger balance sheets, positioning them better in the high-performance computing market [9][10] Market Performance - Following the disappointing Q3 earnings announcement, TeraWulf shares declined over 10%, yet they have returned 254.4% in the past six months, outperforming the sector [11] - In comparison, shares of Riot Platforms and CleanSpark returned 73.5% and 38.7%, respectively, while Cipher Mining surged 425.1% during the same period [11] Conclusion - TeraWulf's widening losses, unsustainable debt load, and risky strategic pivot away from profitable Bitcoin mining operations present compelling reasons for investors to reconsider their positions [15]

Group 1 - TeraWulf reported a significant revenue increase of 87% to $50.6 million, driven by higher average bitcoin prices and expanded mining capacity [2] - Despite the revenue growth, TeraWulf posted a loss of $1.13 per share, which was worse than analysts' expectations of a loss of 4 cents per share [2] - The overall bitcoin market is experiencing a downturn, with bitcoin prices hitting a five-month low, negatively impacting miner stocks and ETFs [3] Group 2 - Cybersecurity leader Palo Alto Networks is recognized among the best growth stocks, indicating strong performance in the cybersecurity sector [5] - The bitcoin mining industry is seeing a shift towards AI integration, with companies like Bitdeer benefiting from this trend [5] - Iren has successfully closed a $1 billion offering, targeting expansion despite the current bitcoin sell-off [5]

Core Insights - TeraWulf Inc. reported a third-quarter 2025 adjusted loss of 7 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 4 cents and 40% wider than the loss of 5 cents from the same quarter last year [1] - Revenues reached $50.6 million, marking an 87% year-over-year increase, although it fell short of the consensus estimate by 1.26% [1] - The increase in revenue was attributed to higher bitcoin output, expanded mining capacity, and the initiation of High-Performance Computing (HPC) lease revenues [1] Quarterly Financial Performance - Revenues for the third quarter increased by 87% year over year, driven by a higher average bitcoin price, expanded mining capacity, and the first-time recognition of HPC lease revenues [2] - Non-GAAP adjusted EBITDA was $18.1 million, a 203% increase compared to $6.0 million in the prior-year quarter [2] Segment Performance - Digital asset revenues in the third quarter were $43.4 million, up 60% year over year from $27.1 million in the third quarter of 2024, primarily due to expanded Bitcoin mining capacity and higher average Bitcoin prices [3] - The HPC segment generated its first reported revenues of $7.2 million in the third quarter, indicating a significant operational shift for the company [6] Mining Capacity and Operations - As of September 30, 2025, the Lake Mariner facility has energized 245 MW of Bitcoin-mining capacity, benefiting from low-carbon energy sources [4] - During the third quarter, TeraWulf's power costs averaged approximately 5 cents per kWh, with cost of revenues rising 17% year over year to $17.1 million [5] Strategic Partnerships and Expansion - TeraWulf formed the Abernathy Joint Venture in Texas, initially designed for 240 MW of capacity with potential expansion to 600 MW, backed by a $1.3 billion Google credit enhancement [11] - The company secured a 51% interest in a future 200 MW Fluidstack-led project, enhancing its long-term growth pipeline [12] Capital and Financing - TeraWulf completed over $5 billion in long-term financings to support its expansion, including a $1.0 billion offering of Convertible Notes and a $3.2 billion private offering of Senior Secured Notes [13][14] - The company ended the third quarter with cash and equivalents of $712.8 million, compared to $274.1 million at the end of 2024, with total outstanding debt around $1.5 billion [15] Future Guidance - TeraWulf reaffirmed its growth strategy targeting 250-500 MW of new contracted HPC capacity annually, with a focus on execution for growth beyond 2027 [16][17] - The company aims to have 200-250 MW of HPC capacity operational by year-end 2026, with phased delivery of the 450 MW Akela capacity scheduled through 2026 [18]

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].