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01/09 20:09
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals. Financial performance shows increased operating expenses and a significant net loss, but Bitcoin mined increased. The Q&A revealed uncertainties about cost savings and contract milestones, but also confidence in operational efficiencies and demand. The strategic plan includes promising partnerships and expansions, with a new share repurchase program. Considering the small market cap, these factors suggest a neutral sentiment with potential for slight positive movement if strategic plans materialize effectively.
Self-mined Bitcoin 372 bitcoin in Q1 '25, a 12% decrease from 423 bitcoin in Q4 '24.
GAAP Revenues $34.4 million in Q1 '25, flat quarter-over-quarter from $35 million in Q4 '24.
Value per Bitcoin Self-mined $92,600 per bitcoin in Q1 '25, up from $82,739 in Q4 '24.
GAAP Cost of Revenue (exclusive of depreciation) $24.5 million in Q1 '25, a 25% increase from $19.6 million in Q4 '24.
Power Cost per Bitcoin Mined $66,084 in Q1 '25, compared to $46,328 in Q4 '24.
Operating Expenses $2.9 million in Q1 '25, a 6% increase from $2.7 million in Q4 '24.
SG&A Expenses $50.1 million in Q1 '25, up from $32.3 million in Q4 '24.
Depreciation $15.6 million in Q1 '25, slightly up from $14.9 million in Q4 '24.
Loss on Fair Value Digital Currency $0.9 million loss in Q1 '25, compared to a $0.6 million gain in Q4 '24.
GAAP Interest Expense $4 million in Q1 '25, compared to $3 million in Q4 '24.
GAAP Net Loss $61.4 million in Q1 '25, compared to a net loss of $29.2 million in Q4 '24.
Non-GAAP Adjusted EBITDA Negative $4.7 million in Q1 '25, down from positive $2.5 million in Q4 '24.
Cash Position $218 million in cash as of March 31, 2025.
Total Assets $841 million as of March 31, 2025.
Total Liabilities $670 million as of March 31, 2025.
Capital Expenditures $130 million spent on WULF Den and CB-1 and CB-2 through March 31, 2025.
BTC Segment Cost of Production Approximately $72,000 in Q1 '25.
Total Capital Expenditures for Core42 Increased from $365 million to $430 million.
Initial Rent per Megawatt Increased from approximately $1.5 million to approximately $1.6 million per megawatt.
Debt Raise Approximately $300 million anticipated in mid-2025.
Share Repurchase Program New $200 million program authorized.
ATM Prospectus Supplement $200 million to be filed.
Operational Capacity: Successfully energized Miner Building 5, bringing total operational capacity to 245 megawatts.
Self-Mining Hash Rate: Exited the quarter with a self-mining hash rate of 12.2 exahash.
HPC Infrastructure: Scaling liquid-cooled infrastructure to meet demand for AI and compute intensive workloads.
Core42 Facilities: Three dedicated buildings for HPC anchor tenant Core42 are under construction.
Market Expansion: Received approval from NYISO for an additional 250 megawatts of capacity at Lake Mariner, bringing total to 500 megawatts.
Cayuga Site: Pursuing expansion opportunities at the Cayuga Site, a sister facility to Lake Mariner.
Operational Efficiency: Mining operations returned to positive EBITDA in April after extreme weather impacted power pricing.
Cost of Energy: Power cost per bitcoin mined increased to $66,084 in Q1 2025 due to a spike in power prices.
Integration of Beowulf: Pursuing full integration of Beowulf Electricity & Data to streamline operations and align incentives.
Project Financing: On track for mid-year execution of project financing for the 72.5 megawatt Core42 buildout.
Power Pricing Risks: Temporary spike in power prices due to extreme weather conditions in January and February 2025, which impacted mining operations and resulted in a negative EBITDA for the quarter.
Regulatory Risks: Monitoring evolving tariff landscape with an estimated 5% to 10% impact on build costs.
Operational Risks: Increased operating expenses due to expansion into High Power Compute hosting without current revenue contribution, leading to a negative adjusted EBITDA.
Market Conditions: Challenging market conditions for Bitcoin Mining operations, including increasing network difficulty and significant incremental costs related to expansion.
Construction and Infrastructure Risks: Potential delays or increased costs in infrastructure development due to design refinements and the complexity of meeting future GPU demands.
Financial Risks: Significant net loss of $61.4 million in Q1 2025, with a reliance on successful project financing and market conditions for future profitability.
Employee Costs: Increased staffing levels necessary to support mining expansion and HPC hosting activities, contributing to rising SG&A expenses.
Operational Capacity: Successfully energized Miner Building 5, bringing total operational capacity to 245 megawatts.
Self-Mining Hash Rate: Exited the quarter with a self-mining hash rate of 12.2 exahash and fleet efficiency of 18 joules per terahash.
HPC Infrastructure: Scaling liquid-cooled infrastructure to meet demand for AI and compute-intensive workloads.
Core42 Partnership: Executing on three dedicated buildings for HPC anchor tenant, Core42, with operational revenue expected in Q2 2025.
Capacity Expansion: Received approval for an additional 250 megawatts at Lake Mariner, aiming for a total of 750 megawatts.
Integration of Beowulf: Pursuing full integration of Beowulf Electricity & Data to streamline operations.
Revenue Expectations: Expecting HPC hosting buildings to come online in Q2, Q3, and Q4 2025.
Cost of Production: Guidance for BTC segment cost of production anticipated to be approximately $47,500 for 2Q through 4Q 2025.
Capital Expenditures: Total capital expenditures increased to approximately $430 million, with CapEx per critical megawatt at $7.2 million.
Debt Raise: Confident in executing approximately $300 million debt raise in mid-2025.
Share Repurchase Program: Authorized a new $200 million share repurchase program.
Share Repurchase Program: The Board has authorized a new $200 million share repurchase program, adding approximately $150 million to the remaining $50 million on the pre-existing program.
The earnings call summary and Q&A section reveal strong financial performance and optimistic guidance, particularly with the Fluidstack agreement and high margins. Despite some concerns about margins and project timelines, management's strategic partnerships and strong demand outlook for HPC instill confidence. The market cap suggests moderate stock price sensitivity, leading to a positive prediction.
The earnings call highlights a significant improvement in financial performance with a positive EBITDA turnaround, strategic partnerships with Google and Fluidstack, and a new share repurchase program. Despite some withheld details, the strategic partnerships and infrastructure expansion suggest growth potential. The market cap indicates moderate sensitivity to news, and the positive elements, such as the Google partnership and share repurchase, likely outweigh concerns, suggesting a positive stock price movement of 2% to 8%.
Despite some positive elements like the share repurchase program and potential long-term benefits from partnerships, the overall sentiment is negative due to the significant EPS miss, increased costs, and a substantial net loss. The Q&A revealed uncertainties and lack of clarity in management's responses, especially regarding cost savings and tenant sign-ups, which may increase investor concerns. The company's market cap suggests a moderate reaction, but the negative financial metrics and unclear guidance lead to a predicted stock price decline in the -2% to -8% range over the next two weeks.
The earnings call presents mixed signals. Financial performance shows increased operating expenses and a significant net loss, but Bitcoin mined increased. The Q&A revealed uncertainties about cost savings and contract milestones, but also confidence in operational efficiencies and demand. The strategic plan includes promising partnerships and expansions, with a new share repurchase program. Considering the small market cap, these factors suggest a neutral sentiment with potential for slight positive movement if strategic plans materialize effectively.
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