Financial Data and Key Metrics Changes - In Q4 2025, revenue was $35.8 million, down from $50.6 million in Q3 2025, primarily due to lower Bitcoin production. HPC lease revenue increased to $9.7 million in Q4, up 35% from $7.2 million in Q3 [15][13] - For the full year, revenue increased 20% to $168.5 million from $140.1 million in 2024, with digital asset revenue of $151.6 million and HPC lease revenue of $16.9 million [15][21] - Cost of revenue increased 32% to $82.7 million in 2025 from $60.3 million in 2024, primarily due to higher realized power prices [16] - Operating expenses rose to $8.8 million in Q4 from $4.5 million in Q3, and full year operating expenses increased to $19.7 million in 2025 from $7.6 million in 2024 [17] - GAAP net loss in 2025 was $661.4 million compared to a net loss of $72.4 million in 2024, driven by non-cash fair value adjustments related to the Google warrant [21] Business Line Data and Key Metrics Changes - The company transitioned from Bitcoin mining to HPC leasing, with HPC lease revenue commencing in July 2025 and energizing 18 megawatts of critical IT capacity by year-end [15][21] - The HPC leasing segment's profit margin was approximately 42%, with adjustments yielding approximately 77% segment profit margin in 2025, converging towards the long-term guidance of 85% [18] Market Data and Key Metrics Changes - Demand for power in Kentucky is extremely strong, with engagement from major hyperscalers and AI compute platforms [7][8] - The company is targeting 480 MW online in Kentucky in the second half of 2027, with proposals for secured loan facilities to fund pre-lease development [25] Company Strategy and Development Direction - The company aims to control energy-advantaged sites and engineer infrastructure around power, securing long-term credit-backed AI capacity [3][4] - The strategy includes replicating the model in Texas and executing financing transactions to support scalable capital structure [4][5] - The focus is on disciplined delivery, turning contracted megawatts into energized capacity and durable recurring cash flow [9] Management's Comments on Operating Environment and Future Outlook - Management emphasized that the AI build-out is constrained by power rather than GPUs, highlighting the importance of controlling power generation [5][6] - The company is confident in the long-term value of its assets, particularly in Kentucky, and is actively evaluating additional opportunities [8][25] - Management noted that while mining has introduced revenue volatility, the transition to HPC revenue will stabilize results over time [14][25] Other Important Information - The company secured over $12.8 billion of HPC lease agreements and executed $6.5 billion of debt and equity linked financing in the second half of 2025 [13][22] - The company has a strong liquidity position with cash and restricted cash totaling $3.7 billion as of December 31, 2025 [22] Q&A Session Summary Question: Can you provide more details on the Kentucky site and ideal customers? - The Kentucky site is a former smelter with immediate power availability and strong demand from major hyperscalers. The company is in substantive discussions with potential customers for long-term deals [27][28] Question: How does the Maryland site fit into TeraWulf's strengths? - The Maryland site is designed to be a net contributor to the grid and benefits from a strong regulatory environment. The company has expertise in power generation and is well-positioned to meet market demands [30][31] Question: Can you comment on the labor and construction schedule in Kentucky? - The company has engaged Fluor as the contractor and is confident in the labor availability and procurement processes to meet the ambitious construction schedule [38][39] Question: What factors drive the 250-500 MW guidance? - The guidance reflects operational capabilities, procurement processes, and financing perspectives, with a focus on delivering 250-500 MW of critical IT load annually [84][85]

Group 1: Market Overview - The year 2025 is notable for gold and silver reaching new highs, marking one of their best years on record [1] - Industrial metals such as copper, aluminum, steel, and lithium have also seen significant price increases driven by the AI build-out and energy transition [2] Group 2: Price Movements - Copper prices have increased by over 34% year to date, while hot-rolled coil steel and aluminum have risen by 27% and 14%, respectively; lithium prices have also surged by 30% [4] Group 3: Supply and Demand Dynamics - The demand for industrial metals is being driven by the AI revolution and energy transition, while supply pressures have also contributed to rising prices [5] - Environmental disasters have hampered global copper supply, including flooding at Ivanhoe's Kamoa-Kakula complex and incidents in Chile and Indonesia [6] - In the lithium market, a suspension of operations by the Chinese government at a major mining site has led to soaring prices [7] Group 4: Geopolitical Factors - Geopolitical risks and government actions, such as export bans, can directly benefit price appreciation in the metals market [8]