WULF

1. Key Historical Highlights

• May 27, 2025: TeraWulf acquired 100% of Beowulf Electricity & Data LLC, simplifying its corporate structure.
• May 9, 2025: Initiated process to secure additional HPC customers, targeting 200–250 MW operational by year-end 2026.
• May 9, 2025: Energized Miner Building 5, increasing hashrate to 12.2 EH/s.
• May 9, 2025: Repurchased $33 million of Common Stock in 2025.
• May 9, 2025: Reported a net loss of $61.4 million for Q1 2025, compared to $9.6 million in the prior year.
• March 3, 2025: Revenue for the year ended December 31, 2024, was $140.1 million, up from $69.2 million in 2023.
• February 28, 2025: Announced strategic expansion into AI-driven HPC hosting with long-term data center leases.
• February 28, 2025: Expanded self-mining operating capacity by 94% year-over-year to 9.7 EH/s.
• January 3, 2025: Secured HPC data center leases with Core42 for over 70 MW of digital infrastructure.
• December 23, 2024: Signed long-term data center lease agreements with Core42, a G42 company.
• November 21, 2024: Promoted Sean Farrell to Chief Operating Officer to enhance HPC and AI data center capabilities.
• November 12, 2024: Completed sale of 25% equity interest in the Nautilus joint venture to Talen Energy Corporation.
• October 25, 2024: Completed an offering of $500 million in 2.75% Convertible Senior Notes due 2030.
• October 23, 2024: Authorized a $200 million share repurchase program.
• October 3, 2024: Monetized equity interests in Nautilus Joint Venture to fuel expansion of HPC/AI and Bitcoin mining.
• July 9, 2024: Announced early debt payoff, eliminating all outstanding debt.

2. Financial Performance Overview

Revenue Growth

• 2024: Revenue increased to $140.1 million from $69.2 million in 2023, driven by higher bitcoin prices and increased mining capacity.
• Q1 2025: Revenue was $34.4 million, down from $42.4 million in Q1 2024, primarily due to a reduction in total bitcoin mined.

Profit Margins

• The cost of mining one bitcoin surged to $66,156 in 2025 from $15,529 in 2024, reflecting increased energy costs and the impact of the April 2024 bitcoin halving.
• Gross profit rose to $21.7 million in Q2 2024 compared to $10.3 million in Q2 2023.

Expense Management

• Convertible Notes Issuance: Raised $500 million through convertible senior notes in October 2024, boosting capital for expansion.
• Debt Repayment: Eliminated all outstanding debt by July 2024, enhancing financial flexibility.

Significant Financial Events

• Share Repurchase Programs: Authorized a $200 million share repurchase program, reflecting confidence in the company's valuation.
• Convertible Notes Offering: Raised significant capital for expansion and share repurchases.

3. Management Effectiveness

Strategic Decision-Making

• Acquisitions and Partnerships: Acquired Beowulf Electricity & Data LLC and secured long-term data center leases with Core42.
• Expansion Initiatives: Initiated HPC customer acquisition process, targeting significant operational capacity by 2026.
• Debt Management: Successfully eliminated all outstanding debt, improving financial flexibility.

Capital Allocation

• Strategic Investments: Focused on expanding infrastructure and optimizing operations for profitability.
• Share Repurchases: Executed significant share repurchases, indicating strong cash flow and confidence in the company's valuation.
• Convertible Notes Issuance: Raised capital to fund strategic investments and minimize shareholder dilution.

4. Key Quotes from Management

• "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
• "TeraWulf continues to advance its strategy of developing scalable, sustainable infrastructure for both Bitcoin mining and high-performance computing." - Paul Prager, CEO, TeraWulf
• "We are positioning TeraWulf to lead at the intersection of energy and compute, a long-term effort that will create substantial value over time." - Paul Prager, Chairman and CEO, TeraWulf Inc.
• "Our disciplined financial management was reflected in our $500 million oversubscribed convertible debt offering, which strengthened our liquidity and funded our initial expansion into HPC hosting." - Patrick Fleury, CFO, TeraWulf
• "Achieving a debt-free capital structure strategically positions us to promptly capitalize on the escalating demand for our highly valuable energy infrastructure." - Patrick Fleury, CFO, TeraWulf Inc.
• "Our strategy is to help these organizations unlock the value of their data through AI and advanced computing." - Paul Prager, Chairman and CEO, TeraWulf
• "Monetizing our interest in Nautilus allows us to capture a significant premium for our investment and provide significant capital to invest into our HPC/AI infrastructure." - Paul Prager, CEO, TeraWulf