This article first appeared on GuruFocus.
Release Date: February 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
TeraWulf Inc (NASDAQ:WULF) successfully transitioned into a scaled, power-backed AI infrastructure platform in 2025.
The company acquired 100% of Beowulf electricity and data, integrating power generation expertise into its platform.
Secured long-term site control at Cayuga with up to 400 megawatts capacity, leveraging existing grid infrastructure.
Signed a 450 megawatt lease with Fluid Stack, supported by Google’s credit, validating their model and execution capability.
Added approximately 1.5 gigawatts of additional power-backed capacity in Kentucky and Maryland, enhancing growth potential.
Revenue in Q4 2025 decreased to $35.8 million from $50.6 million in Q3 2025, primarily due to lower Bitcoin production.
The company reported a GAAP net loss of $661.4 million in 2025, driven by non-cash fair value adjustments and depreciation.
Operating expenses increased significantly, rising to $8.8 million in Q4 from $4.5 million in Q3, reflecting scaling efforts.
Interest expense in Q4 was $62.4 million, a substantial increase from $9.8 million in Q3, following capital raises.
The transition from Bitcoin mining to stable contracted HPC revenue is ongoing, with volatility still impacting results.
Q: Could you give us more details on the Kentucky site and what an ideal customer or lease would look like there? A: Paul Prager, CEO, explained that the Kentucky site, a former smelter, is strategically located on a transmission superhighway with immediate power availability. Demand is strong, with major hyperscalers and AI compute platforms showing interest. The company is in active discussions with potential customers, aiming for a long-term deal with a world-class credit.
Q: How does the Maryland site play into TeraWulf’s strengths, especially with its “bring your own power” model? A: Paul Prager highlighted that the Maryland site, a former coal generation campus, is designed to be a net contributor to the Maryland grid. The site benefits from Maryland’s progressive brownfield programs, which align with TeraWulf’s expertise in power generation and grid integration. The company is well-positioned to address the power shortfall in the region.
Q: Do you think the pricing and terms in Kentucky can be materially better than past projects, and do you have the resources to meet the construction schedule? A: Paul Prager and Nazir Khan, CTO, expressed confidence in Kentucky’s labor market and construction expertise. They have partnered with Fluor, a world-class contractor, and are ahead in procurement. The immediate availability of power and competitive pricing are expected to attract customers.
