TeraWulf (US:WULF)2026-02-27 18:54Capacity and Infrastructure - The company has contracted 522 MW of critical IT load across its two primary HPC campuses, providing long-dated revenue visibility[18]. - The Cayuga Site in New York has the potential to support up to 400 MW of gross capacity, representing approximately 320 MW of contractual critical IT load[19]. - The company targets the contraction of approximately 250 MW to 500 MW of new critical IT HPC capacity annually, aligned with customer demand and power availability[20]. - The Lake Mariner Data Campus is designed for scalable expansion, with a near-term gross capacity of approximately 500 MW and potential expansion to 750 MW[35]. - As of December 31, 2025, the Lake Mariner Data Campus operated 245 MW of legacy bitcoin mining capacity and had 18 MW of critical IT HPC capacity[35]. - The company has entered into long-term data center lease agreements to deliver 60 MW of critical IT load and 378 MW of critical IT load at the Lake Mariner Data Campus[39][40]. - The Abernathy HPC Campus is designed for 168 MW critical IT load, fully pre-leased to Fluidstack USA III under a 25-year lease[44]. - TeraWulf's Lake Mariner Data Campus operates 245 MW of legacy bitcoin mining capacity and 18 MW of HPC capacity, with plans for expansion to approximately 500 MW in the near term[172]. - The Abernathy HPC Campus is designed for 240 MW gross capacity, fully pre-leased to Fluidstack USA III, backed by Google's credit support[174]. - The Cayuga Site has a long-term ground lease for 183 acres, with potential to support up to 400 MW of gross capacity and approximately 320 MW of critical IT load[177][202]. - The Lake Mariner Data Campus has the potential to scale to approximately 750 MW, subject to additional approvals[208]. - The Company's contracted HPC platform represents 522 MW of critical IT load, including the Abernathy HPC Campus[209]. - The development of the Abernathy HPC Campus provides meaningful regional diversification, reducing concentration risk in power markets[210]. - The Company's power strategy emphasizes reliability and efficiency, leveraging in-house expertise in power generation and infrastructure[212]. Financial Performance and Risks - The company is subject to risks related to the volatility of bitcoin prices, which significantly impacts profitability[82]. - The company has a history of operating losses and may report additional losses in the future, particularly from bitcoin mining activities where costs have exceeded revenues[119]. - Future market prices of bitcoin remain difficult to predict, and demand for HPC hosting services may not develop as anticipated, impacting revenue generation[119]. - Bitcoin mining operations are highly dependent on bitcoin prices, which have historically been volatile and influenced by various external factors[120]. - The company may face significant liabilities from contracts with HPC data center customers, which could adversely affect its financial condition[98]. - Future strategic growth initiatives may require additional capital, which could be dilutive or subject to restrictive terms[102]. - The company depends on significant customers for its HPC data centers, and downturns in their businesses could impact payment collectability[95]. - Strategic acquisitions are part of the company's growth strategy, but integration challenges could negatively affect financial results[104]. - Increased costs for power procurement and outages may adversely affect the company's financial performance and results of operations[92]. - The company has financed strategic growth through at-the-market (ATM) offerings, which may lead to dilution of existing shareholders[158]. - The trading price of the company's common stock has been volatile, influenced by various external factors and market conditions[153]. - The company does not currently intend to pay cash dividends, meaning shareholders will not receive returns unless they sell their shares[160]. Operational Challenges - TeraWulf's HPC and AI-focused data center campuses are critical for future revenue, but construction risks include delays and increased costs[85]. - TeraWulf's ability to complete data center projects on time is affected by global supply chain challenges and labor market conditions[86]. - The company faces challenges in securing interconnection facilities and transmission systems, which could complicate project planning and increase financial risks[93]. - The Abernathy HPC Campus development is subject to a joint venture agreement, potentially limiting the company's control over strategic decisions[94]. - The company relies on third parties for sufficient power supply, and any limitations could negatively impact its bitcoin mining and HPC data center operations[91]. - The company is making considerable investments in IT systems, which may lead to operational disruptions if difficulties arise[112]. Cybersecurity and Insurance - TeraWulf has developed a cybersecurity risk management program to protect critical systems and information, integrating it into overall enterprise risk management[162]. - The company has not identified any known cybersecurity threats that have materially affected its operations or financial condition, but acknowledges potential risks[164]. - TeraWulf maintains property and casualty insurance for its facilities, with bitcoin mining assets insured for approximately $50 million per occurrence[70]. - The company has separate cyber liability insurance with an aggregate limit of approximately $15 million[72]. Employee and Corporate Governance - TeraWulf has a comprehensive benefits program for employees, including a 401(k) retirement plan and flexible work hours[63]. - The company offers equity awards under its 2021 Omnibus Incentive Plan to attract and retain employees[64]. - The company is committed to fostering a diverse and inclusive workforce, enhancing organizational culture and innovation[66]. Regulatory Environment - Increasing regulatory scrutiny may result in new costs and operational changes, potentially affecting the utility of bitcoin[135]. - The company may inadvertently become classified as an investment company if digital assets exceed 40% of total assets, which could impose significant regulatory burdens[147]. - Regulatory changes could impose significant operational restrictions, affecting the company's business and financial condition[133]. - Potential bans on bitcoin mining in certain jurisdictions could adversely affect the company's operations and business prospects[136]. - The company faces potential compliance costs from new and changing regulations, which could adversely affect operations and financial condition[142]. - The company participates in energy demand response programs in New York to manage operations during extreme weather events, receiving funds to offset lost mining revenue[139]. - The company believes it is advantageously positioned due to its use of predominantly zero-carbon power, which may mitigate potential regulatory costs related to climate change[140]. - The company may be subject to heightened regulatory scrutiny and litigation risks due to the nature of the cryptocurrency industry, which could adversely impact its financial condition[146].