TeraWulf's Q1 2025 Earnings Call: Unpacking Contradictions in Strategy, Demand, and Customer Engagement

Site acquisition and capacity expansion strategy, Core42 contract and customer engagement, demand environment and pricing, and customer contracts and signings are the key contradictions discussed in TeraWulf's latest 2025Q1 earnings call.



Bitcoin Mining Performance and Power Pricing Challenges:
- TeraWulf reported a 12% decrease in bitcoins mined in Q1 2025, with 372 bitcoins mined compared to 423 bitcoins in Q4 2024.
- The decline was due to a temporary spike in power prices, with realized power prices increasing by 37% to $0.801 per kilowatt-hour in Q1 2025 from $0.509 per kilowatt-hour in Q4 2024, offset by demand response proceeds.
- The historic power pricing event, which began in December and persisted through February, impacted mining operations and profitability.

HPC Hosting Business Expansion:
- TeraWulf is actively executing on three dedicated buildings for its HPC anchor tenant, Core42, with the WULF Den operational and set to generate revenue in Q2.
- The company has secured an additional 250 megawatts of capacity at Lake Mariner, raising the total to 500 megawatts.
- Expansion is driven by strong demand from enterprises seeking secure, high-density infrastructure and strategic partnerships with Core42 and Dell.

Shareholder and Strategic Focus:
- TeraWulf is pursuing a full integration of Beowulf Electricity & Data to streamline operations and eliminate related party disclosures.
- The integration is expected to drive value by aligning incentives across the organization and enhancing shareholder alignment.
- This process is driven by rigorous governance protocols and independent oversight to address potential conflicts of interest.

Financial Projections and Capital Allocation:
- The company aims to raise approximately $300 million in debt financing mid-year and has established a new $200 million share repurchase program.
- These actions support ongoing operations and project financing needs, with a focus on lease revenue generation from HPC hosting.
- The strategy reflects a management approach to leverage various financial tools to optimize shareholder value amid market volatility and capital-intensive growth opportunities.