TeraWulf (WULF)2025-02-28 22:53Financial Data and Key Metrics Changes - In Q4 2024, GAAP revenues increased by 29% quarter-over-quarter, reaching 27.1 million in Q3 2024, and year-over-year increased by 102% from 140.1 million in 2024 [28] - The GAAP net loss in Q4 2024 was 22.7 million in Q3 2024, while the net loss for 2024 was 73.4 million in 2023 [39] - Non-GAAP adjusted EBITDA for Q4 2024 was 6.3 million in Q3 2024, while adjusted EBITDA for 2024 was 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, while the total for 2024 was 2,728 Bitcoin compared to 3,343 Bitcoin in 2023 [27] - The hash rate achieved by WULF Mining was 9.7 exahash per second at year-end, with plans to increase to 13.1 exahash per second with the deployment of new miners [10] Market Data and Key Metrics Changes - The company reported a 55% increase in realized power prices from 0.059 per kilowatt hour in Q4 2024 [29] - The power cost per Bitcoin mined was 30,448 in Q3 2024, and 1 billion in revenue over ten years [16] - TeraWulf is focused on scaling its HPC hosting business while continuing to optimize its Bitcoin mining operations, indicating a strategic shift towards high-performance computing and AI workloads [8][15] - The company is prioritizing the Cayuga site for expansion, which is expected to add 150 megawatts of capacity in 2026, scalable to 400 megawatts by 2028 [19] 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 optimistic about the future, with plans to energize Miner Building 5 and execute on the Core42 agreement in 2025 [22] - Management highlighted the importance of energy infrastructure and the ability to evaluate additional site opportunities, which positions the company favorably in the competitive landscape [20][124] Other Important Information - The company repurchased 200 million authorization, marking the first return of capital by any public Bitcoin miner [21] - The company has initiated a process to integrate the Cayuga site, ensuring compliance with governance standards and transparency [19] 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 ensuring stability [48] Question: What geographies are attractive for additional site acquisitions? - The priority is the Cayuga site, with a focus on energy development and the ability to evaluate challenged sites for potential [50][51] Question: What is the status of the 250 megawatts at Lake Mariner? - The company is in discussions with potential customers for the available capacity, emphasizing long-term demand [61] Question: What is the timeline for the initial 72 megawatts at CB-1? - The timeline is dependent on Core42's decisions regarding their options for additional power [66] Question: What is the competitive landscape for sourcing new sites? - The company believes it has a competitive advantage due to its energy expertise and ability to evaluate sites that others may overlook [120][123] Question: What is the status of project financing efforts? - Management expressed confidence in the demand for financing, with positive feedback from potential lenders [126][130]