TeraWulf (US:WULF)2025-11-10 22:11Revenue 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]