Let's frame the opportunity, Lisa. You know, the the market reaction is very clear, but for AMD and the AI industry at large, what do you think this represents. >> Well, look, uh, this is a huge milestone for AMD.You know, we are so thrilled with the partnership with, uh, the open AI team and it's also, you know, a huge moment for the AI industry because, you know, when you get to the right down to it, you need more AI compute. I mean, that's where we are today. Compute is the foundation for all of the inte ...

Core Viewpoint - Nebius has transformed from a seemingly peripheral player in the tech industry to a significant contender, achieving a 350% increase in stock price and a market capitalization exceeding $21 billion within a year, driven by strong revenue growth projections and a landmark agreement with Microsoft [2][3]. Company Overview - Nebius, an AI-centric cloud company, emerged from a split with Yandex and is categorized as a "Neocloud," focusing exclusively on AI workloads with optimized infrastructure [4]. - The company has secured a $17.4 billion agreement with Microsoft to provide GPU infrastructure over five years, validating its capabilities and positioning it among major tech players [3][5]. Market Position and Strategy - Nebius differentiates itself from general-purpose clouds like AWS and Azure by concentrating on high-performance, dedicated GPU infrastructure tailored for AI labs and organizations [4]. - The partnership with Nvidia, a leader in AI chips, provides Nebius with preferential access to advanced GPUs, enhancing its competitive edge [7]. - Nebius employs a vertically integrated model, designing its own servers to reduce costs and improve performance, which allows for rapid deployment and efficiency [8]. Growth Potential - The AI cloud market is expected to grow significantly, with Nebius projected to increase revenues from $568 million in 2025 to approximately $1.5 billion in 2026, and potentially reaching $7.6 billion by 2030 if it maintains a 50% annual growth rate [10]. - The Microsoft contract could contribute over $3.5 billion annually by 2028, indicating strong revenue potential [10]. Valuation Insights - Currently trading at about 40 times the estimated revenue for 2025, if this multiple contracts to 15 times sales, Nebius could achieve a market cap of $114 billion, translating to a stock price of around $459 per share by 2030, representing over 5 times the current price [11].

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenue of $44 million, down 10% from $49 million in Q1 2025, attributed to rising network cash rates and summer power prices in Texas [33][34] - The GAAP net loss for the quarter was $46 million, or $0.12 per share, compared to a net loss of $15 million, or $0.05 per share in Q2 2024 [34][35] - Adjusted earnings for Q2 2025 were $30 million, or $0.08 per share, up approximately 400% from $6 million in the previous quarter [34][36] - The company’s cash position increased from $23 million in March to $63 million in June, reflecting the remaining proceeds from a convertible offering and opportunistic Bitcoin sales [42] Business Line Data and Key Metrics Changes - The company mined a total of 4.44 Bitcoin in Q2 2025, with 4.34 Bitcoin from Odessa and 10 Bitcoin from Black Pearl, generating revenue at an average price of approximately $99,700 per Bitcoin [37] - Black Pearl Phase 1 contributed about 2% of quarterly revenue, with expectations for significant growth in future quarters as production ramps up [24][37] Market Data and Key Metrics Changes - The average all-in electricity cost per Bitcoin produced at Odessa was approximately $24,686, while the combined all-in electricity cost for joint venture sites was roughly $44,594 [22][24] - The company’s projected all-in weighted average power cost remains competitive at $0.31 per kilowatt hour [8] Company Strategy and Development Direction - The company is focused on strategically evaluating funding options to support growth while minimizing dilution, having raised approximately $168 million in net proceeds from a convertible offering [12] - Black Pearl Phase 2 is being developed to support both hydro Bitcoin mining and HPC compute applications, with a flexible design to accommodate future tenant demands [15][19] - The company aims to capitalize on the growing demand for power and tightening supply in the HPC market, with ongoing discussions to secure advantageous deals [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of Barber Lake and the potential for Black Pearl Phase 2, highlighting the increasing energy demands of advanced AI systems [14][18] - The company anticipates that the demand for energy will continue to grow, positioning itself to support tenants as the HPC market scales [19][21] Other Important Information - The company successfully paid off all short-term borrowings, reducing its liabilities significantly from $139 million in Q1 to $53 million in Q2 [46][48] - The company’s operating capacity currently stands at 477 MW, with potential pipeline capacity expansion of up to 2.6 GW in the coming years [10] Q&A Session Summary Question: Can you quantify the time to convert from hydro Bitcoin mining to AI HPC compute? - The company expects to have the full 150 megawatts ready by the back half of next year, with the ability to accommodate fast requests for HPC [51][53] Question: What would trigger hyperscalers to choose an operator in your peer set? - There has been increased interest from hyperscalers, particularly in July, with many reaching out for discussions [57][59] Question: What are the potential differences in costs affiliated with the hybrid model compared to a pure mining site? - The estimated cost for the hybrid model is about $1.5 million per megawatt, with additional costs depending on tenant requirements [63][65] Question: What sites are being actively marketed for HPC? - The primary focus is on Barber Lake, Black Pearl Phase 2, and Stingray, with ongoing discussions with potential tenants [87][89]

Operations and Hashrate Growth - Cipher Mining's self-mining hashrate increased from approximately 16.8 EH/s in Q2 2025 to approximately 20.4 EH/s currently, with an expected increase to approximately 23.5 EH/s in Q3 2025[16] - Black Pearl Phase I construction was completed, deploying approximately 6.9 EH/s, with plans to increase to approximately 10.0 EH/s in Q3 2025 after purchasing approximately 1.5 EH/s of Canaan A15 Pro rigs[17] - The company's operating capacity, including JV capacity, is approximately 477 MW, with a future potential capacity of approximately 2.6 GW across 7 sites[14] Financial Performance - Revenues increased from $37 million in Q2 2024 to $44 million in Q2 2025, representing an approximately 18.9% increase year-over-year[61] - Adjusted earnings improved significantly from a loss of $3 million in Q2 2024 to a profit of $30 million in Q2 2025[62] - GAAP net earnings decreased from a loss of $15 million in Q2 2024 to a loss of $46 million in Q2 2025[62] - Adjusted earnings per share increased from a loss of $0.01 in Q2 2024 to earnings of $0.08 in Q2 2025[62] Development Pipeline - Black Pearl Phase I has a total power capacity of 150 MW and Black Pearl Phase II has a total power capacity of 150 MW[40] - The Barber Lake site has an approved power capacity of 300 MW and a total acreage of 587 acres[42][43] - The Stingray site has an approved power capacity of 100 MW and a total acreage of 250 acres, with energization expected in Q3 2026[48][49][52] Bitcoin Holdings and Power Costs - Cipher Mining held approximately 1,063 BTC in Q2 2025, compared to approximately 1,034 BTC in Q1 2025[11] - The weighted average power price is approximately 3.1 cents/kWh[14] - The power cost per BTC in Q2 2025 was $27,324[14]

Q2 2025 Financial Performance - Revenue for Q2 2025 was $652 million[4, 5, 10, 14, 18], exceeding the mid-point of guidance[10, 18] - Non-GAAP gross margin was 57.3%[4, 6, 12, 14], above the mid-point of guidance[8] - Non-GAAP EPS was $0.57[4, 7, 9, 10, 14, 18], also exceeding the mid-point of guidance[10, 18] - The company repurchased 1.5 million shares for $119 million, at an average price of approximately $80 per share[9] Business Unit Performance - Semiconductor Test sales were $492 million, down 12% year-over-year[9, 15] - Memory Test sales decreased 53% year-over-year[9, 15] - IST sales increased 98% year-over-year[12, 15] - Product Test sales were $85 million, up 7% year-over-year[9, 12, 15] - Robotics sales decreased 17% year-over-year but increased 9% quarter-over-quarter[9, 12, 15, 19] Q3 2025 Outlook - Revenue is expected to be between $710 million and $770 million[10, 17, 20] - Non-GAAP EPS is projected to range from $0.69 to $0.87[10, 17, 20] - The company anticipates a gross margin between 56.5% and 57.5%[12, 17, 21] - Operating expenses are expected to be between 36.5% and 38.5% of sales[12, 17, 21]

Financial Data and Key Metrics Changes - In Q4 2024, GAAP revenues increased by 29% quarter-over-quarter, reaching $35 million from $27.1 million in Q3 2024, and year-over-year increased by 102% from $69.2 million in 2023 to $140.1 million in 2024 [28] - The GAAP net loss in Q4 2024 was $29.2 million compared to a net loss of $22.7 million in Q3 2024, while the net loss for 2024 was $72.4 million compared to a net loss of $73.4 million in 2023 [39] - Non-GAAP adjusted EBITDA for Q4 2024 was $2.5 million, down from $6.3 million in Q3 2024, while adjusted EBITDA for 2024 was $60.4 million compared to $31.9 million in 2023 [39] Business Line Data and Key Metrics Changes - The WULF Mining business doubled revenue and adjusted EBITDA year-over-year, driven by higher Bitcoin production and favorable Bitcoin pricing [10] - In Q4 2024, the company mined 423 Bitcoin, a 24% decrease from 555 Bitcoin in Q3 2024, but stable when excluding the impact of the Nautilus sale [27] - The hash rate achieved by WULF Mining was 9.7 exahash per second, with expectations to increase to 13.1 exahash per second upon full deployment of new miners [10] Market Data and Key Metrics Changes - The company reported a 55% increase in realized power prices from $0.038 per kilowatt hour in Q3 2024 to $0.059 per kilowatt hour in Q4 2024 [29] - The power cost per Bitcoin mined was $46,328 in Q4 2024, compared to $30,448 in Q3 2024, reflecting increased energy costs [30] Company Strategy and Development Direction - The company aims to contract and deploy 100 to 150 megawatts of HPC hosting capacity annually over the next three years, with a focus on scaling WULF Compute to meet demand for high-density compute infrastructure [16] - TeraWulf is prioritizing the Cayuga site for expansion, expecting to add 150 megawatts of capacity in 2026, scalable to 400 megawatts by 2028 [19] - The company is actively evaluating additional site opportunities beyond the 750 megawatts available at Lake Mariner, leveraging its expertise in energy infrastructure [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for HPC and AI compute infrastructure, despite some headlines suggesting a slowdown in hyperscaler demand [15] - The company remains focused on optimizing its mining operations while transitioning to HPC hosting, driven by customer demand rather than solely by Bitcoin prices [110] - Management highlighted the importance of energy development and ownership as a competitive advantage in securing new sites [120] Other Important Information - The company repurchased $150 million of stock as part of a $200 million buyback authorization, marking the first return of capital by any public Bitcoin miner [21] - TeraWulf's cash balance as of December 31, 2024, was $274 million, with total assets amounting to $787 million and total liabilities of $543 million [40] Q&A Session Summary Question: How is Mariner positioned for inference given the current demand? - Management indicated that both training and inference capabilities are supported at the Lake Mariner site, with existing contracts in place [48] Question: What geographies are attractive for additional site acquisitions? - The company is prioritizing the Cayuga site and is also looking at opportunities in Montana, Maryland, and Virginia [50][75] Question: What is the status of the initial 72 megawatts at CB-1? - Management stated that the initial 72 megawatts will be available in 2026, with ongoing discussions with customers regarding deployment [60] Question: How does the company view the impact of Bitcoin pricing on mining plans? - Management confirmed that the focus remains on becoming a premier HPC AI data center company, with Bitcoin mining being a secondary consideration [110] Question: What is the current status of project financing efforts? - Management expressed high confidence in project financing, noting significant demand from lenders and ongoing discussions with potential financing partners [126][130]