TeraWulf (US:WULF)2025-11-10 22:30Financial Data and Key Metrics Changes - In Q3 2025, GAAP revenues increased by 6% quarter over quarter to $50.6 million from $47.6 million in Q2 2025 [11] - The company recorded a GAAP net loss of $455 million in Q3 2025 compared to a net loss of $18.4 million in Q2 2025 [16] - Non-GAAP adjusted EBITDA improved by 25% quarter over quarter, totaling $18.1 million from $14.5 million in Q2 2025 [17] Business Line Data and Key Metrics Changes - The company recognized $7.2 million of HPC lease revenue at Wolf Den and CV1, with intra-quarter lease commencement resulting in 22.5 megawatts of energized hosting capacity [11] - Self-mined Bitcoin decreased by 22% to 377 Bitcoin in Q3 2025 from 485 Bitcoin in Q2 2025 [12] - Operating expenses increased by 28% quarter over quarter to $4.5 million in Q3 2025 from $3.5 million in Q2 2025 [13] Market Data and Key Metrics Changes - Power prices in upstate New York normalized to $4.7 per kilowatt-hour in Q3 2025, in line with historical levels [12] - The company has evaluated over 150 potential sites for expansion, narrowing it down to a select group that meets strict criteria [10] Company Strategy and Development Direction - TeraWulf signed a 10-year agreement with FluidStack backed by Google, representing average annual revenue of approximately $670 million [4] - The company increased its annual target for new HPC signings from 100-150 megawatts per year to 250-500 megawatts per year [9] - A joint venture with FluidStack and Google was announced to develop the Abernathy HPC campus in Texas, adding 168 megawatts of new HPC capacity [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for high-performance compute, noting significant interest from hyperscalers and cloud companies [66] - The company is focused on disciplined execution and thoughtful expansion to create sustainable long-term value for shareholders [91] - Management highlighted the importance of credit quality in customer relationships and the ongoing dialogue with potential customers [28] Other Important Information - The company closed $3.2 billion in senior secured financing to fully fund the Lake Mariner high-power compute buildout [4] - As of September 30, the company held $712.8 million in cash and restricted cash, with total assets amounting to $2.5 billion [17] Q&A Session Summary Question: Can you talk about the key sites you're close to closing on? - Management indicated they are very close to finalizing at least two additional sites, focusing on regional diversity for long-term agreements [21] Question: Can you reconcile the HPC margins? - Management explained that the HPC margin was about 72%, but adjusting for certain expenses would bring it closer to the previously discussed 85% [23] Question: How is the company thinking about customer diversity? - Management expressed satisfaction with the credit quality of current customers and indicated ongoing discussions with potential new customers [27] Question: Can you clarify the Abernathy joint venture opportunity? - Management detailed the collaborative relationship with FluidStack and Google, emphasizing the strategic fit and potential for future projects [30] Question: What are the penalties for missing delivery timelines? - Management stated that there are significant grace periods in the leases, with minimal penalties for the first 30-90 days [73] Question: How is the company able to add more power pipeline? - Management highlighted long-term relationships and strategic site selection as key factors in securing additional capacity [76]