WULF earnings call summary

Prepared Highlights

• Bitcoin mining: Self-mined 485 bitcoin at Lake Mariner in Q2 2025 (~5 BTC/day), a 30% increase from 372 bitcoin in Q1 2025 (CFO).
• GAAP revenue: $47.6 million in Q2 2025, up 38% quarter-over-quarter from $34.4 million in Q1 2025 (CFO).
• GAAP cost of revenue (excl. depreciation): $22.1 million in Q2 2025, down 10% from $24.5 million in Q1 2025 (CFO).
• SG&A expense: $14.3 million in Q2 2025; adjusted for stock-based compensation, SG&A decreased to $10.7 million from $11.5 million in Q1 2025 (CFO).
• Non-GAAP adjusted EBITDA: $14.5 million in Q2 2025, up from negative $4.7 million in Q1 2025 (CFO).
• New hyperscale AI hosting agreement: Signed 10-year, 200+ MW critical IT load lease with Fluidstack at Lake Mariner; ~$3.7 billion contracted revenue, potential to exceed $8.7 billion if lease extensions exercised (CEO).
• Fluidstack deployment: First 40 MW expected online in first half of 2026; full deployment by year-end 2026; lease expected to generate >$350 million annual revenue with ~85% site-level net operating margins (CEO).
• Google backstop: $1.8 billion credit support for Fluidstack’s lease obligations over 10 years; Google receives warrants representing ~8% of TeraWulf equity (CEO, CFO).
• Cayuga site: 80-year ground lease with purchase option; exclusive rights to develop up to 400 MW of digital infrastructure; >130 MW expected online in 2027 (CEO).
• Total platform capacity: Exceeds 1 GW after transactions (CEO).
• Core42 milestones: WULF Den fully operational and generating revenue; CB-1 generating revenue within next week; CB-2 on track for Q4 2025 (CEO).
• Power cost guidance: $0.05/kWh for second half of 2025 (CFO).
• Annual SG&A guidance: Updated to $50–$55 million from $40–$45 million, reflecting HPC business growth (CFO).
• Beowulf acquisition: Closed in Q2 2025; 94 employees transitioned to TeraWulf (CFO).
• Expansion pipeline: Evaluated over 75 potential sites in 2025; a handful progressing through negotiations (CFO).

Official guidance:

• Mining operations expected to contribute positively to EBITDA in second half of 2025 at current bitcoin prices and network hash rate (CFO).
• Power price guidance: $0.05/kWh for second half of 2025 (CFO).
• Annual SG&A guidance: $50–$55 million (CFO).

Mgmt quotes:

• “These transactions increase our total platform capacity to over 1-gigawatt, firmly positioning Lake Mariner and Cayuga as cornerstone assets for the future of AI infrastructure.” (CEO)
• “Google is providing a $1.8 billion backstop for Fluidstack's lease obligations in exchange for warrants representing about 8% of TeraWulf's equity, an extraordinary vote of confidence from one of the most influential players in AI.” (CEO)
• “The lease is expected to bring in over $350 million a year in revenue, with site level net operating margins of roughly 85%.” (CEO)
• “These are truly a game changer for TeraWulf, and I want to highlight some of the financial implications.” (CFO)
• “Given the expected improvement in our credit profile, we've refined our financing strategy to focus on a series of capital markets initiatives in the second half of 2025.” (CFO)

Prepared Metrics

Q&A Batch (1-5 of 9)

Q1 — Michael John Grondahl

• Topic: Fluidstack partnership rationale, exclusivity window, and Google backstop details
• Key points:
  • Fluidstack delivers compute clusters to large US and European companies; adding them to Core42 supports goal of having >1 customer per site.
  • Signed deals: CB-3 (42 MW net critical IT capacity) and CB-4 (162 MW net critical IT capacity); discussions ongoing for CB-5 (copy of CB-4) with a "tight window" for exclusivity.
  • Google backstop is ~50% of lease payments over the term, covering ~6 years, declining over the 10-year lease term.
• Mgmt stance: Bullish — highlighted strategic fit, multiple customers, and Google's financial support as de-risking.

Q2 — Brett Anthony Knoblauch

• Topic: Impact of new deals on bitcoin mining capacity and CapEx details
• Key points:
  • Lake Mariner has ~200 MW near-term power for bitcoin mining; optimistic about bringing another 250 MW online in 18 months.
  • Core42 build: ~$200 million spent through Q2, total spend ~$430 million, with back-ended costs (e.g., UPS) in late Q3/Q4.
  • Fluidstack CapEx: $8–10 million range, higher than Core42 due to larger scale (200+ MW vs. 60 MW) and customized design.
• Mgmt stance: Neutral — explained capacity allocation and cost drivers without committing to shutting down mining.

Q3 — Dillon Griffin Heslin

• Topic: Yield-to-cost discipline and capital markets strategy
• Key points:
  • Unlevered yield-to-cost on Fluidstack build is in same range as Core42; management targets maintaining that discipline.
  • Demand since early May feels "urgent"; pricing from Core42 and Fluidstack/Google deal seen as repeatable; market may be tighter in 2026 due to power constraints and rising hyperscaler CapEx.
  • Financing strategy refined with Morgan Stanley for H2 2025, benefiting from Google's support (debt and equity) to lower cost of funds.
• Mgmt stance: Bullish — confident in maintaining returns and leveraging Google partnership for cheaper financing.

Q4 — Nicholas Giles

• Topic: Contract pricing details and project financing structure
• Key points:
  • $3.7 billion implies average revenue per MW of ~1.9; specific contract start level and annual escalator are confidential.
  • Project financing will be a series of transactions in H2 2025, with Morgan Stanley as adviser; Google backstop would apply to CB-5 if executed.
• Mgmt stance: Neutral — declined to disclose pricing details, citing competitive reasons; confirmed Google backstop for potential CB-5.

Q5 — Brian H. Dobson

• Topic: Google partnership's impact on future client discussions
• Key points:
  • Hyperscaler demand exists; the Fluidstack/Google construct addresses both capacity demand and financing.
  • New clients may see Google's involvement as an endorsement; site advantages include 89% zero-carbon power, redundant grid, land, water, fiber latency.
  • Team experience (15+ years together, decades in energy infrastructure) and detailed design discussions with Fluidstack/Google demonstrate capability.
• Mgmt stance: Bullish — expects the partnership to attract future clients, citing operational and strategic strengths.

Q&A Batch (6-9 of 9)

Q6 — Christopher Charles Brendler

• Topic: 项目融资条件改善及扩张计划加速
• Key points:
  • 与Google（AA+信用、约300亿美元债务）合作被视为“游戏改变者”，彻底改变Core42项目融资路径，可能获得更高效资本结构。
  • 此前150–200 MW年扩产目标基于可用容量和融资能力；交易后可能加快节奏，但仍需评估。
  • 过去讨论的70% LTV等目标不再适用，将“以非常强势的地位”进入市场。
• Mgmt stance: 乐观（因Google成为重要股东和合作伙伴，融资谈判地位大幅提升）

Q7 — Martin Toner

• Topic: 项目层面EBITDA差异、Fluidstack客户及Cayuga收购定价
• Key points:
  • 未来将以项目层面净运营收入（NOI）汇报，而非单一EBITDA；Core42及新交易项目NOI利润率约85%。
  • 无法披露Fluidstack客户基础，仅称其与全球最大公司合作。
  • Cayuga收购通过竞争流程，收到多个第三方报价；独立委员会批准以低于第三方报价的折扣价成交，使用股票（9500万股）而非现金以保持利益一致。
• Mgmt stance: 中性（仅解释报告变化和交易结构，未给出明确方向判断）

Q8 — Stephen William Glagola

• Topic: 利润率指引澄清及建设经验分享
• Key points:
  • 项目NOI利润率约85%（非此前75%的EBITDA margin），加上SG&A指引可推算整体EBITDA。
  • 建设经验：Lake Mariner连续4年施工，同一批承包商持续滚动，人员积累带来效率；已与Fluidstack进行数月详细技术设计，缩小设计范围以加速交付。
  • Cayuga将受益于同一批熟练工人和持续改进的建造流程。
• Mgmt stance: 乐观（强调经验积累、承包商稳定性及设计优化带来的交付信心）

Q9 — Edward Lee Engel

• Topic: Google参与过程、合同保护条款及期权扩展
• Key points:
  • 交易从开始到敲定历时3–4个月，Google从早期即参与谈判；8%股权反映其长期合作意愿，Google Q2电话提及1060亿美元数据中心积压需求。
  • 合同包含常规SLA（性能与交付），与Core42协议类似；设计参数范围紧凑并有具体时间表。
  • 关于30日期权选项：各方均善意推进，预计条款与现有交易类似（包括Google backstop和股权参与）。
• Mgmt stance: 乐观（强调合作关系牢固，条款合理，期权有很高成功概率）