Financial Data and Key Metrics Changes - In Q1 2025, the company self-mined 372 Bitcoin, averaging approximately 4 Bitcoin per day, which is a 12% decrease from 423 Bitcoin mined in Q4 2024 [20] - GAAP revenues were flat quarter over quarter at $34.4 million in Q1 2025 compared to $35 million in Q4 2024 [21] - GAAP net loss in Q1 2025 was $61.4 million, compared to a net loss of $29.2 million in Q4 2024 [24] - Non-GAAP adjusted EBITDA for Q1 2025 was negative $4.7 million, down from positive $2.5 million in Q4 2024 [24] Business Line Data and Key Metrics Changes - The self-mining hash rate at the Lake Mariner facility reached 12.2 exahash with fleet efficiency at 18 joules per terahash [8] - The company experienced a temporary spike in power prices, which impacted EBITDA, but operations returned to positive EBITDA in April 2025 [9][20] - The company expects to generate revenue from the Wolf Den facility starting in Q2 2025, with additional facilities expected to go live in Q3 and Q4 2025 [10][11] Market Data and Key Metrics Changes - Power prices increased by 37% from $0.59 per kilowatt hour in Q4 2024 to $0.81 per kilowatt hour in Q1 2025, significantly impacting costs [21] - The company anticipates power pricing to normalize to approximately $0.05 per kilowatt hour for Q2 through Q4 2025 [22] Company Strategy and Development Direction - The company aims to lead at the intersection of energy and compute, focusing on sustainable Bitcoin mining and high-performance compute (HPC) hosting [6][7] - The company is pursuing an additional 250 megawatts of capacity at Lake Mariner, bringing the total to 750 megawatts, with plans for further expansion [13][16] - The integration of Beowulf Electricity and Data is being pursued to streamline operations and eliminate related party disclosures [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for HPC and AI workloads, indicating strong interest from enterprises seeking secure, high-density infrastructure [10][81] - The management team remains optimistic about the company's ability to execute and deliver on its commitments, which is expected to enhance customer confidence and drive future growth [50][96] Other Important Information - The company plans to launch a project financing process for the Core 42 build-out, with early feedback from potential lenders being positive [15][27] - The company has authorized a new $200 million share repurchase program, reflecting confidence in its capital position [27] Q&A Session Summary Question: What are the potential cost savings from the integration of Terawulf and Beowulf? - Management indicated that the integration process is rigorous due to its nature as a related party transaction, and the timeline is dependent on independent board approvals [32][34] Question: What are the expectations for build costs for future sites? - Management guided a range of $6 million to $8 million per megawatt for build costs, with potential adjustments based on design changes and tariff impacts [37][40] Question: What is the outlook for EBITDA margins on future capacity? - Management expects EBITDA margins to be around 75% for the first 72.5 megawatts, with higher incremental margins anticipated as additional capacity is added [52][55] Question: What have been the biggest learnings from working with Core 42? - The partnership with Core 42 has provided valuable insights into design specifications and the importance of collaboration in evolving the business [60][66] Question: Will additional capacity be developed before signing new tenants? - Management indicated that site preparation is ongoing, but significant expansion would not occur without signed agreements [73] Question: What is the near-term demand environment for HPC and AI? - Management noted strong demand for power and interest from hyperscalers and enterprises, emphasizing the importance of quality sites [81][84] Question: How does the company plan to combat elevated global hash rates? - Management acknowledged the challenges posed by rising hash rates but emphasized the efficiency of their operations and the focus on high-value deployments in HPC and AI [86][89]

Financial Data and Key Metrics Changes - In Q1 2025, the company self-mined 372 Bitcoin, averaging approximately 4 Bitcoin per day, which is a 12% decrease from 423 Bitcoin mined in Q4 2024 [18] - GAAP revenues were flat quarter over quarter at $34.4 million in Q1 2025 compared to $35 million in Q4 2024 [19] - GAAP net loss in Q1 2025 was $61.4 million, compared to a net loss of $29.2 million in Q4 2024 [22] - Non-GAAP adjusted EBITDA for Q1 2025 was negative $4.7 million, down from positive $2.5 million in Q4 2024 [22] Business Line Data and Key Metrics Changes - The operational capacity of the Bitcoin mining platform at Lake Mariner increased to 245 megawatts, with self-mining hash rates of 12.2 exahash and fleet efficiency of 18 joules per terahash [6] - The high-performance compute (HPC) hosting platform is expected to generate revenues starting in Q2 2025, with three dedicated buildings for the anchor tenant, Core 42, being prioritized for construction [8][9] Market Data and Key Metrics Changes - Power prices experienced a historic spike in January and February 2025, but normalized by March, allowing mining operations to return to positive EBITDA in April [7][20] - The company anticipates power costs to align with historical pricing at Lake Mariner, guiding $0.05 per kilowatt hour for Q2 through Q4 2025 [20] Company Strategy and Development Direction - The company aims to lead at the intersection of energy and compute, focusing on sustainable Bitcoin mining and scalable HPC infrastructure [6] - Plans include requesting an additional 250 megawatts of capacity at Lake Mariner, bringing the total to 750 megawatts, and pursuing expansion opportunities at the Cayuga site [12][15] - The integration of Beowulf Electricity and Data is being pursued to streamline operations and align incentives across the organization [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for HPC and AI workloads, indicating strong interest from enterprises seeking secure, high-density infrastructure [8] - The company is optimistic about future profitability as it expects to benefit from normalized power prices and the operationalization of HPC facilities [20][22] Other Important Information - The company is monitoring the evolving tariff landscape, estimating a 5% to 10% impact on build costs [13] - A new $200 million share repurchase program has been authorized, alongside plans for a $300 million debt raise [25] Q&A Session Summary Question: Integration of Terawulf and Beowulf - Management indicated that the integration process is rigorous due to it being a related party transaction, and they expect it to drive long-term value for shareholders [30][31] Question: Expectations for Build Costs - The company guided build costs to be in the range of $6 million to $8 million per megawatt, with potential adjustments based on design changes [34][35] Question: EBITDA Margins on Future Capacity - Management expects EBITDA margins to be around 75% for the first 72.5 megawatts, with significant cost efficiencies due to the scale of operations [49][50] Question: Learnings from Core 42 Partnership - The partnership with Core 42 has provided valuable insights into design specifications and operational requirements, emphasizing the importance of collaboration [57][62] Question: Future Capacity and Customer Contracts - Management clarified that discussions with Core 42 are progressing well, and energizing CB1 and CB2 will enhance their ability to attract additional customers [90][92] Question: Near-term Demand Environment - Management noted strong near-term demand for power, particularly from enterprises and hyperscalers, with a focus on high-quality sites [76][78]