TeraWulf (US:WULF)2025-05-09 20:06Financial 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]