WULF

1. Key Historical Highlights

• October 16, 2025: WULF Compute priced $3.2 billion of 7.750% senior secured notes due 2030 to fund the Lake Mariner data center expansion.
• August 22, 2025: TeraWulf completed the full greenshoe exercise, bringing its 1.00% convertible senior notes due 2031 to $1.0 billion.
• August 18, 2025: TeraWulf priced and upsized a $850 million offering of 1.00% convertible senior notes due 2031 with capped call transactions to support expansion.
• August 18, 2025: TeraWulf announced a proposed private offering of $400 million of convertible senior notes due 2031.
• August 18, 2025: Fluidstack exercised its option for CB-5 at Lake Mariner, adding 160 MW of critical IT load with operations expected in the second half of 2026.
• August 14, 2025: TeraWulf signed two 10-year AI hosting agreements with Fluidstack totaling over 200 MW and anchoring approximately $3.7 billion in contracted revenues.
• August 14, 2025: TeraWulf secured an 80-year ground lease for 183 acres at the Cayuga site enabling up to 400 MW of capacity with 138 MW power expected ready in 2026.
• August 8, 2025: TeraWulf reported second quarter 2025 revenue of $47.6 million and adjusted EBITDA of $14.5 million with HPC hosting revenue expected to begin in the third quarter of 2025.
• May 27, 2025: TeraWulf acquired Beowulf Electricity & Data LLC for approximately $52.4 million to simplify its corporate structure.
• May 9, 2025: TeraWulf reported first quarter 2025 revenue of $34.4 million, began dedicated HPC data hall buildouts, and repurchased $33 million of stock.
• May 5, 2025: Management reported a first quarter 2025 net loss of $61.4 million and a rise in cost to mine one bitcoin to $66,156.
• March 3, 2025: Full-year 2024 MD&A showed revenue of $140.1 million and a net loss of $72.4 million while outlining HPC hosting expansion plans.
• February 28, 2025: TeraWulf highlighted expansion into AI-driven HPC hosting with liquidity of $275 million and over $150 million of share repurchases executed.
• February 28, 2025: The fourth quarter 2024 earnings call detailed plans to contract and deploy 100 to 150 MW of HPC hosting capacity annually over the next three years.
• January 3, 2025: TeraWulf finalized over 70 MW of HPC data center leases with Core42 representing more than $1 billion of revenue over an initial 10-year term.
• December 23, 2024: TeraWulf announced long-term data center lease agreements with Core42 to deliver over 70 MW at Lake Mariner with phased releases during 2025.
• November 21, 2024: Sean Farrell was promoted to Chief Operating Officer to support the expansion of HPC and AI data center capabilities.
• November 12, 2024: TeraWulf reported third quarter 2024 revenue of $27.1 million, sold its 25% Nautilus joint venture stake, and completed a 2.5 MW HPC proof of concept.
• October 25, 2024: TeraWulf closed a $500 million 2.75% convertible senior notes offering and repurchased $115 million of common stock.
• October 23, 2024: The Board authorized a $200 million share repurchase program running through December 31, 2025.

2. Financial Performance Overview

• Revenue expanded to $140.1 million in 2024 from $69.2 million in 2023, then softened to $34.4 million in first quarter 2025 before improving to $47.6 million in second quarter 2025 as operations scaled.
• Profitability remains volatile: adjusted EBITDA was $60.4 million in 2024, declined to $(4.7) million in first quarter 2025, and rebounded to $14.5 million in second quarter 2025 as cost pressures eased.
• Bitcoin mining economics deteriorated with the halving and energy inflation, raising cost to mine from $15,529 in early 2024 to $66,156 in first quarter 2025, pressuring margins until HPC revenues commence.
• Liquidity was strong with $275 million in cash and bitcoin at December 31, 2024 and $219.6 million at March 31, 2025, supplemented by major financings including $500 million 2.75% converts in October 2024, $1.0 billion 1.00% converts in August 2025, and $3.2 billion secured notes priced in October 2025.
• Contracted revenue visibility expanded materially via Fluidstack and Core42, with disclosed totals rising to $6.7 billion contracted and up to $16 billion with extensions following CB-5.
• Gap: No reported third or fourth quarter 2025 financial results beyond the second quarter figures in the provided documents.

3. Management Effectiveness

• Executed a deliberate pivot toward high-margin, longer-duration HPC hosting by securing multi-year anchor tenants Core42 and Fluidstack and scaling contracted backlog rapidly.
• Balanced capital deployment by raising low-cost convertibles, later layering secured notes for project financing, while concurrently repurchasing shares and using capped calls to mitigate dilution.
• Simplified governance and operations through the Beowulf Electricity & Data acquisition, removing related-party complexity and preserving cost guidance.
• Demonstrated execution with on-time buildouts toward 72.5 MW HPC in 2025, interconnection approvals up to 500 MW, and a successful 2.5 MW proof of concept prior to larger deployments.
• Advanced energy and infrastructure advantage via long-dated leases at Lake Mariner and Cayuga, emphasizing predominantly zero-carbon, low-cost power as a durable competitive moat.
• Evidence lacking: realized long-term HPC margins at the projected levels and detailed power hedging mechanisms to mitigate energy price volatility.

4. Key Quotes from Management

• "TeraWulf continues to execute on its strategy to develop scalable, sustainable digital infrastructure to support both high-performance computing (HPC) hosting and proprietary Bitcoin mining." — Paul Prager, Chief Executive Officer, TeraWulf (Second Quarter 2025 Financial Results, August 08, 2025)
• "We continue to see strong demand from enterprise and hyperscale customers for low-cost, zero-carbon compute infrastructure." — Paul Prager, Chief Executive Officer, TeraWulf (Second Quarter 2025 Financial Results, August 08, 2025)
• "This expansion underscores the unmatched scale and capabilities of the Lake Mariner campus." — Paul Prager, Chief Executive Officer, TeraWulf (TeraWulf Announces Fluidstack Expansion with 160 MW CB-5 Lease at Lake Mariner, August 18, 2025)
• "We are proud to unite world-class capital and compute partners to deliver the next generation of AI infrastructure, powered by low-cost, predominantly zero-carbon energy." — Paul Prager, Chief Executive Officer, TeraWulf (Signing of AI Hosting Agreements with Fluidstack, August 14, 2025)
• "In 2024, TeraWulf achieved significant financial and operational milestones, further solidifying our leadership in sustainable digital infrastructure." — Paul Prager, Chief Executive Officer, TeraWulf (Fourth Quarter and Full Year 2024 Financial Results, February 28, 2025)
• "The Board’s approval of a $200 million share repurchase program over the next year highlights our commitment to creating value for stockholders and driving profitable growth, all while delivering strong returns." — Paul Prager, Chief Executive Officer, TeraWulf (Authorization of Share Repurchase Program, October 23, 2024)
• "Our strategic relationship with G42, and most specifically with Core42, positions TeraWulf at the intersection of two of today’s most transformative computational networks: AI compute and Bitcoin mining." — Paul Prager, Chief Executive Officer, TeraWulf (Announcement of Data Center Lease Agreements with G42, December 23, 2024)