Financial Data and Key Metrics Changes - Total revenue for 2024 was $108 million, a 141% increase from 2023 [48] - Adjusted EBITDA reached $73 million, compared to $12.4 million in 2023 [53] - Gross profit was $45.7 million, nearly threefold increase from 2023, with gross margins expanding approximately 500 basis points to 42.3% [51] Business Line Data and Key Metrics Changes - HPC revenue made up over 40% of full-year revenue and more than half of Q4 revenue, with cloud services generating $45.7 million in its first year of operations [7][49] - Colocation services contributed $1.4 million from October 12 through the year-end [49] - Bitcoin mining revenue was $58.6 million, up 32% year-over-year, but accounted for only 54% of total revenue in 2024, down from 98% in 2023 [41][48] Market Data and Key Metrics Changes - The company has seen significant demand for high-performance computing (HPC) infrastructure, exceeding current capacity [56] - The demand for GPUs is surging, with a strong customer pipeline and contracts representing nine-figure annual revenue [19][23] Company Strategy and Development Direction - The acquisition of Enovum vertically integrated data center operations and expanded customer base, enhancing infrastructure scaling capabilities [8][25] - The company is focused on a disciplined approach to GPU procurement and capital deployment to avoid excess inventory risk [20] - The strategic focus is on expanding both cloud services and colocation services to create a durable and diversified cash flow [59] Management's Comments on Operating Environment and Future Outlook - Management believes the current market sentiment does not accurately reflect the company's growth potential, particularly in HPC [57] - The company is actively exploring financing options for its HPC business to support growth without diluting equity [61][151] - Future demand for AI compute is expected to be driven by inference, with strategic developments in metropolitan areas to meet customer needs [40] Other Important Information - The company is debt-free and has approximately $98.9 million in cash and restricted cash as of December 31, 2024 [54] - Capital expenditures for 2024 totaled $94 million, primarily for GPU purchases and the acquisition of Montreal 2 [54] Q&A Session Summary Question: What is the current run rate for cloud services? - The current run rate is approximately $72 million with the addition of DNA Funds as a customer [66][67] Question: What is the expected revenue contribution from new GPU deployments? - The B200s are expected to start generating revenue in April, while the H200s' timeline is uncertain due to ongoing R&D [75] Question: What was the fourth-quarter revenue for the colocation business? - The colocation revenue recognized was $1.4 million from the date of acquisition [78] Question: Can you provide details on the 100-megawatt site under LOI? - The site has 24 megawatts of power available, with a path to 48 megawatts and discussions for an additional 100 megawatts by the end of 2025 [87] Question: How confident is the company in sourcing infrastructure equipment? - The equipment for upcoming deployments has been secured, with a large portion already delivered [115] Question: What is the company's strategy regarding Bitcoin mining? - The focus remains on optimizing the fleet and maintaining Bitcoin exposure in a capital-efficient manner, rather than expanding for growth's sake [45][124]

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]

Financial Data and Key Metrics Changes - For Q4 2024, total revenue was $69 million, down from $114.8 million in Q4 2023. Self-mining revenue decreased by 11.5% to $41.5 million, primarily due to the April 2024 halving and increased global network hashrate [9][38] - Gross profit for Q4 2024 was $5.1 million, with a gross margin of 7.4%, compared to $27 million and 23.5% in Q4 2023. Adjusted EBITDA was negative $3.8 million [40][44] - Full-year 2024 revenue totaled $349.8 million, with a gross profit of $66.4 million and adjusted EBITDA of $39.4 million [45] Business Line Data and Key Metrics Changes - Cloud hashrate revenue fell to $2.3 million from $16.2 million, attributed to the expiration of long-term contracts and reallocation of hashrate to self-mining [39] - General hosting revenue decreased to $8.5 million from $25.2 million, while membership hosting revenue dropped to $12.4 million from $23.4 million, mainly due to contract expirations and removal of less efficient machines [39] Market Data and Key Metrics Changes - The company reported an increase in average self-mining hashrate to 8.4 exahash from 7 exahash year-over-year, which partially offset revenue declines [38] - The global network hashrate increase and the April 2024 halving negatively impacted revenue and gross profit margins [10][41] Company Strategy and Development Direction - The company aims to build a fully vertically-integrated business, including developing its own power generation assets and mining hardware. A significant acquisition was made for a 19-acre site for a 101 megawatt gas-fired power plant in Alberta [12][13] - The strategy includes developing ASIC technology to differentiate from competitors and penetrate the $4 billion to $5 billion annual ASIC market [11][18] - The company plans to ramp up self-mining hashrate significantly by deploying new SEALMINER machines, targeting approximately 40 exahash by Q4 2025 [29][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting that 2025 is expected to be a pivotal year as strategic initiatives begin to yield results [35] - The company is closely monitoring the competitive landscape, particularly regarding U.S.-based miners facing delays due to trade tensions, but has not experienced direct impacts [58][60] Other Important Information - The company has secured over 2.6 gigawatts of power capacity, with plans to energize about 1 gigawatt in 2025, which will support both self-mining and potential HPC and AI data center operations [33] - The company has a strong cash position with $476.3 million in cash and cash equivalents, and plans to continue holding a portion of mined Bitcoin [50] Q&A Session Summary Question: What is the impact of U.S.-China trade tensions on ASIC demand? - Management noted that they are monitoring the situation but have not faced direct impacts. They remain hopeful for a resolution that would allow them to explore the U.S. market [58][60] Question: What is the manufacturing capacity for the next batch of A2s and A3 rigs? - Management expects capacity to increase as they continue to work with TSMC, but specific pre-announcements will not be made until allocations are confirmed [62] Question: How is revenue recognized for ASIC sales? - Revenue is recognized upon delivery of the ASICs, with down payments held on the balance sheet until full delivery [65] Question: What is the CapEx outlook for 2025? - CapEx for 2025 is anticipated to be between $340 million to $370 million, primarily for Bitcoin mining infrastructure [53][70] Question: How does the company view partnerships for HPC development? - The company is open to strategic partnerships that add value, particularly for HPC opportunities [132]