Paul Prager (CEO): “We are positioning TeraWulf to lead at the intersection of energy and compute... a long-term effort that we believe will create substantial value over time.”
Paul Prager (CEO): “Demand remains strong, especially from enterprises seeking secure high density infrastructure over the next 12 to 18 months.”
Paul Prager (CEO): “Our goal is to design infrastructure that will support future generations of GPUs, so we are committed to getting it right the first time.”
Patrick Fleury (CFO): “While our EBITDA was slightly negative for the quarter, it's important to emphasize we are carrying significant incremental costs related to our expansion into High Power Compute hosting without any current revenue contribution.”
Patrick Fleury (CFO): “One simple analysis we regularly reference internally... the Core42 leases for 60 megawatts of critical load are worth approximately $2 per fully diluted share outstanding.”
Topic: Customer price sensitivity to higher build costs
Key points:
Build costs have been openly communicated to customers; every design decision with Core42 had a cost component.
Sensitivity varies by customer type: Neocloud players see $5–10/kW/month lease rate as a small component of $2–3/GPU hour total compute cost; enterprise customers with large finance teams scrutinize every dollar.
Tariff-related cost increases are understood by customers as part of the business; margins have been guided to both market and customers.
Mgmt stance: Neutral — discussions described as “constructive,” with sensitivity depending on end use, but no specific pricing or margin impact quantified.
Q12 — Bill Papanastasiou
Topic: Milestones for new contract progress and Bitcoin mining expansion
Key points:
No single “magic bullet” milestone; customer discussions vary: some have negotiated contracts but need capacity clarity, others wait for next-gen chips, others agree on capacity/schedule but need terms.
Hard milestone: energizing CB-1 — expected to trigger celebration with Core42, drive inbound customer demand for both Core42 and TeraWulf.
Bitcoin mining: 250 MW infrastructure available; ~60% of fleet below 20 J/TH efficiency; no near-term expansion beyond 13.1 EH/s target, only ongoing fleet optimization.
Mgmt stance: Neutral — progress is multi-faceted and not easily tracked; hash rate changes will come from optimization, not expansion.
Q13 — Joe Flynn
Topic: Project financing appetite and pricing expectations
Key points:
Market benchmarks: hyperscaler risk at SOFR + 200 bps; CoreWeave risk at SOFR + 400–500 bps and tightening.
TeraWulf’s customer credit quality viewed as better than CoreWeave but less well-known.
Target pricing for first financing: SOFR + 400–500 bps, with hope to do better.
Mgmt stance: Neutral — realistic target range based on market comparables, with expectation of improvement as credit becomes more established.