TeraWulf (NASDAQ:WULF) executives used the company’s fourth-quarter and full-year 2025 earnings call to emphasize a strategic shift toward “power-backed AI infrastructure,” highlighting major site-control moves, large-scale leasing agreements, and financing transactions intended to support a multi-year buildout of high-performance computing (HPC) capacity.
Strategy pivot: power control and contracted AI capacity
Chairman and CEO Paul Prager described 2025 as a “defining year,” saying the company executed on its plan to become a scaled AI infrastructure platform anchored by energy-advantaged sites and long-term, credit-backed leasing. Prager pointed to several milestones, including acquiring 100% of Beowulf Electricity & Data to “fully integrate power generation expertise” and reduce related-party complexity.
Prager argued that AI infrastructure expansion is increasingly constrained by power availability, interconnection, and transmission rather than GPUs, and said the industry is moving toward “integrated, bring-your-own generation campuses.” He positioned TeraWulf’s experience in power generation permitting, construction, and operations as a differentiator.
Project updates: Wolf Compute, Core42, and standardized building designs
Chief Technology Officer Nazar Khan provided updates on delivery timing and execution risk reduction across the company’s campuses. Khan said Wolf Den and CB1 were delivered in the third quarter and generated revenue during the fourth quarter. He added that CB2A is operational and CB2B is expected to be fully online in March, with all Core42 capacity expected to be energized and revenue-producing by the end of the first quarter.
Khan noted that after contract execution, Core42 requested incremental fit-out enhancements, prompting sequencing adjustments. He said the monthly recurring charge was revised, no penalties were triggered, and revenue commencement remained aligned with the customer’s deployment schedule.
For the Fluidstack buildings, Khan said CB3 is expected to deliver in mid-May, with post-signing design optimizations incorporated without changing building footprint or lease economics. He said the resulting revenue timing impact has been incorporated into the company’s financial model.
Khan emphasized that CB4 and CB5 were designed collaboratively with the tenant from inception, describing them as a “fully standardized, repeatable design” that represents the majority of contracted Wolf Compute capacity. He outlined execution-risk reductions tied to standardized electrical redundancy, refined trade sequencing, procurement after final design alignment, and repeatable mechanical and electrical installation. Both buildings remain on schedule with targeted lease commencement dates in the third quarter and fourth quarter of 2026, respectively.
Through design optimization, Khan said the company increased critical IT capacity from 162 MW to 168 MW per building without impacting the base construction budget. He said the incremental 12 MW across the campus is expected to generate about $200 million of additional lease revenue over the initial term.
Kentucky and Maryland: near-term power and “bring-your-own generation”
Management repeatedly returned to recently added sites, including Kentucky (Hawesville) and Maryland (Morgantown/Chesapeake Data). Prager said Kentucky demand is “extremely strong,” with a data room open and diligence ongoing with “every major hyperscaler” and several AI compute platforms. He said some written term sheets had been received and described supportive engagement with state leadership, including a meeting with Kentucky Governor Andy Beshear.
Prager characterized the Kentucky site as a former smelter location with access to multiple utilities and immediate power availability, calling it compelling for “central location” and “scale.” He said the company is focused on securing “the best financial credits” as long-term customers and suggested it expects a “world-class credit” for what it hopes will be a 10-15-year deal, without providing a firm timeline.
On Maryland’s Morgantown campus, Prager described a former coal generation facility in the Washington, D.C./Northern Virginia corridor. He outlined a phase-one vision including approximately 500 MW of new dispatchable generation, 250 MW of battery storage, and 500 MW of data center load, followed by a similar phase two. He said the site is engineered to operate as a net generator to the state.
Khan provided a preliminary view of Morgantown economics, saying typical data center capex is in the $8 million to $10 million per MW range, while dispatchable gas-fired generation could be $2 million to $3 million per MW, plus roughly $1 million per MW-equivalent for battery storage and another roughly $1 million per MW tied to critical IT load components. He described an “all-in” figure of around $13 million to $14 million per MW on a fully loaded basis, with the intent to charge that full cost back in the capacity payment to the customer, who would be “long the value of the generation.”
Responding to regulatory questions, executives said a required Federal Energy Regulatory Commission (FERC) approval at Morgantown is considered routine and expected within three to six months.
Financial results: HPC revenue ramps while mining remains volatile
Chief Financial Officer Patrick Fleury said the second half of 2025 was “transformational,” citing more than $12.8 billion of HPC lease agreements and $6.5 billion of debt and equity-linked financing. Fleury stressed that 2025 results still reflected meaningful contribution from bitcoin mining and its volatility, but said that over time volatility should decline as contracted HPC revenue becomes the dominant driver. He also said mining’s flexible load profile has been strategically valuable at Lake Mariner for demand response participation and power cost management.
For the fourth quarter of 2025, Fleury reported revenue of $35.8 million, down from $50.6 million in the third quarter, primarily due to lower bitcoin production. He said HPC lease revenue increased to $9.7 million in Q4, up 35% from $7.2 million in Q3.
For the full year, Fleury reported revenue increased 20% to $168.5 million from $140.1 million in 2024, comprised of $151.6 million of digital asset revenue and $16.9 million of HPC lease revenue. He said HPC leasing commenced in July 2025 and the company had energized 18 MW of critical IT capacity as of year-end.
Fleury said cost of revenue (excluding depreciation) rose to $18.9 million in Q4 from $17.1 million in Q3, while demand response proceeds recorded as a reduction in cost of revenue decreased by $4.4 million quarter-over-quarter. For 2025, cost of revenue increased to $82.7 million from $60.3 million in 2024, which he attributed primarily to higher realized power prices. Demand response proceeds increased to $17.7 million in 2025 from $8.6 million in 2024.
Operating expenses increased as the company scaled for HPC deployment, with Q4 operating expenses rising to $8.8 million from $4.5 million, and full-year operating expenses increasing to $19.7 million from $7.6 million. Fleury said the company would finish 2024 with under 100 full-time employees and expects to exit 2026 with close to 300.
Fleury also addressed HPC segment profitability, saying the as-reported annual segment profit margin was about 42% versus long-term guidance of around 85%, due to tenant fit-out revenue and costs, development and pre-revenue operating costs, and partial-period revenue as buildings ramp. He said adjusting for those factors yields an approximately 77% segment profit margin for 2025.
Liquidity, non-cash impacts, and funding outlook
Fleury said cash and restricted cash totaled $3.7 billion as of December 31, 2025. He also discussed interest expense and other non-cash items, including a 2025 loss of $429.8 million from changes in fair value of warrant and derivative liabilities primarily related to the Google warrant, which he said did not affect liquidity. GAAP net loss for 2025 was $661.4 million compared to a net loss of $72.4 million in 2024, driven primarily by non-cash fair value adjustments and non-cash depreciation. Non-GAAP adjusted EBITDA for 2025 was negative $23.1 million versus positive $60.4 million in 2024.
On funding, Fleury said both Wolf Compute and Abernathy are fully funded through substantial completion with long-term fixed-rate financing, and that the company does not anticipate the need for additional equity to fund currently contracted development. He also said schedule adjustments reduced projected revenue by about $16 million across 2025-2026, while design optimization increased capacity and is expected to generate about $200 million of incremental revenue over the initial lease term, improving projected cash flows and reducing expected debt immaturity by about $45 million versus prior projections.
For Kentucky, Fleury said the company has proposals for secured loan facilities to fund pre-lease development to preserve parent liquidity and is targeting 480 MW online in the second half of 2027, reiterating, “We do not build on speculation.”
About TeraWulf (NASDAQ:WULF)
TeraWulf, Inc (NASDAQ: WULF) is a digital asset infrastructure company focused on the development and operation of zero-carbon bitcoin mining facilities. The company integrates sustainable power generation with high-density data center technologies to deliver environmentally responsible digital asset mining services. Its core business revolves around designing, building and operating large-scale mining projects powered exclusively by renewable or emissions-free energy sources.
One of TeraWulf’s flagship projects is “Project Nautilus,” located in Tompkins County, New York, which harnesses hydroelectric power sourced from the New York State Electric & Gas (NYSEG) grid.
