WULF

1. Key Historical Highlights

• August 8, 2025: TeraWulf reports a 45.5% year-over-year increase in BTC mining capacity to 12.8 EH/s and secures interconnection approval to draw 500 MW from the grid.
• May 27, 2025: Completed acquisition of Beowulf Electricity & Data, simplifying corporate structure and integrating 94 employees.
• May 9, 2025: Energized Miner Building 5, increasing total capacity to 245 MW and self-mining capacity by 52.5% year-over-year.
• February 28, 2025: Announced a strategic expansion into AI-driven HPC hosting, with long-term data center leases expected to generate $1 billion in revenue over initial 10-year contracts.
• October 25, 2024: Closed a $500 million 2.75% Convertible Senior Notes offering, repurchasing $115 million of common stock.
• October 23, 2024: Board of Directors authorized a $200 million share repurchase program to run through December 31, 2025.
• October 3, 2024: Sold a 25% equity interest in the Nautilus joint venture for $92 million, reinvesting proceeds into the Lake Mariner facility.
• September 4, 2024: Achieved a 100% year-over-year increase in self-mining capacity to 10.0 EH/s.
• August 12, 2024: Completed construction of Building 4 at the Lake Mariner Facility, advancing AI and high-performance computing initiatives.
• August 9, 2024: Established WULF Compute to focus on scalable digital infrastructure research and development.
• July 2024: Achieved a 102% increase in annual revenue for 2024, reaching $140.1 million.
• June 2024: Completed significant electrical infrastructure upgrades at Lake Mariner, enhancing power delivery reliability.
• May 2024: Commenced construction of dedicated HPC data halls, targeting 200-250 MW operational by year-end 2026.
• April 2024: Strengthened balance sheet with $275 million in cash and bitcoin holdings.
• March 2024: Achieved a 94% increase in self-mining operating capacity year-over-year to 9.7 EH/s.
• February 2024: Announced repurchase of $33 million of common stock to date in 2025.

2. Financial Performance Overview

Revenue Growth

• Q2 2025: Revenue increased to $47.6 million, up from $35.6 million in Q2 2024.
• 2024 Annual Revenue: Increased by 102% to $140.1 million, driven by higher bitcoin prices and expanded mining capacity.
• Q2 2024: Revenue rose to $35.6 million from $15.5 million in Q2 2023.

Profit Margins

• Q2 2025 Adjusted EBITDA: Decreased to $14.5 million from $19.5 million in Q2 2024, reflecting rising energy costs.
• 2024 Adjusted EBITDA: Increased to $60.4 million from $31.9 million in 2023.

Expense Management

• Cost of Mining: Increased significantly due to rising energy costs and bitcoin halving impacts, with a cost of $66,156 per bitcoin in Q1 2025.
• Convertible Notes Issuance: Raised $500 million in October 2024 for infrastructure expansion and stock repurchases.

Significant Financial Events

• Debt Repayment: Fully retired debt in early 2024, enhancing financial flexibility.
• Share Repurchase Program: Authorized $200 million program, executed over $150 million in repurchases by February 2025.

3. Management Effectiveness

Strategic Decision-Making

• Expansion into AI and HPC: Secured long-term data center leases expected to generate $1 billion in revenue over 10 years.
• Corporate Simplification: Acquired Beowulf Electricity & Data to streamline operations and enhance governance.
• Operational Enhancements: Energized Miner Building 5, increasing capacity and hashrate significantly.

Capital Allocation

• Investment in Infrastructure: Focused on expanding Lake Mariner facility and constructing new HPC/AI facilities.
• Convertible Notes Offering: Used proceeds for strategic investments and share repurchases to enhance shareholder value.

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, CEO, TeraWulf (August 8, 2025)
• "This acquisition consolidates our operations under a single, unified structure, enhancing transparency and providing greater strategic flexibility as we pursue long-term growth and value creation." - Kerri Langlais, Chief Strategy Officer, TeraWulf (May 27, 2025)
• "We are positioning TeraWulf to lead at the intersection of energy and compute. It’s a long-term effort, but one that we believe will create substantial value over time." - Paul Prager, Chairman and CEO, TeraWulf Inc. (May 9, 2025)
• "In 2024, TeraWulf achieved significant financial and operational milestones, further solidifying our leadership in sustainable digital infrastructure." - Paul Prager, CEO, TeraWulf (February 28, 2025)
• "Our strategy is to help these organizations unlock the value of their data through AI and advanced computing." - Paul Prager, Chairman and CEO, Terra Wolf (February 28, 2025)
• "This transaction further aligns TeraWulf’s focus and investments with where we have the most operational efficiency, the greatest growth potential, and the best opportunity to drive incremental value for shareholders." - Paul Prager, CEO, TeraWulf (October 3, 2024)
• "We have taken decisive steps to strengthen our balance sheet, including fully retiring our debt earlier this year, while making substantial progress in executing our business strategy.” - Paul Prager, CEO, TeraWulf (October 23, 2024)