Transcript: TeraWulf Q2 2026 Earnings Conference Call

TeraWulf (NASDAQ: WULF ) held its second-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

8 million, a 32% increase from the first quarter, driven by additional high-power compute (HPC) capacity coming online. The company expanded its platform through acquisitions and signed a 20-year lease with Anthropic for 401 megawatts at its Justify Data campus, expecting $19 billion in revenue over the lease term. TeraWulf continues to focus on securing power-advantaged infrastructure, with ongoing projects in Kentucky, Maryland, and New York, and plans to contract an additional 250 to 500 megawatts of IT capacity annually. 1% interest in the Abernathy Joint Venture for approximately $530 million was executed, allowing TeraWulf to focus on larger-scale opportunities.

Management emphasized the importance of regional diversity and power security, highlighting partnerships with utilities and potential international expansion. Full Transcript OPERATOR Greetings and welcome to the TeraWulf second quarter 2026 earnings conference call. At this time all participants are in listen-only mode. A question-and-answer session will follow the prepared remarks.

Please note that this call is being recorded. I will now turn the call over to John Larkin, Senior Vice President and Director of Investor Relations with TeraWulf. Please go ahead. John Larkin — Director of Investor Relations Good morning and welcome to TeraWulf second quarter 2026 earnings call.

Joining me today are Chairman and CEO Paul Prager, our CTO Nazir Khan, and our CFO Patrick Fleury. Before we begin, please note that our remarks today may include forward-looking statements. These statements are subject to risks and uncertainties and actual results may differ materially. Words such as anticipate, expect, believe, intend, estimate, project, could, should, will, and similar expressions are intended to identify forward-looking statements.

gov and in the Investor Relations section of our website. We will also reference certain non-GAAP financial measures. Reconciliations to the most comparable GAAP measures are available in our earnings release and filings. With that, I will turn the call over to our Chairman and CEO, Paul Prager.

Paul Prager, CEO Thanks, John, and good morning, everyone. The second quarter was defined by execution and expansion. At Lake Mariner, we converted additional contracted capacity into operating infrastructure and recurring lease revenue. At the same time, we expanded the platform through the acquisition of Muskie.

Following quarter-end, we executed a 401 megawatt lease with Anthropic at the Justify Data campus and entered into an agreement to monetize our interest in the Abernathy joint venture. Taken together, these developments demonstrate the model we've been building, which is to secure power-advantaged infrastructure, contract with high-quality customers, deliver capacity in phases, and selectively recycle capital into the next generation of growth. Our number one priority remains execution. You see that most clearly at Lake Mariner.

CB3 was fully delivered and generating lease revenue in early July, bringing total revenue-generating critical IT capacity at the campus to 102 megawatts. That delivery also satisfied the applicable conditions for $600 million of Google's credit support for Fluidstack's obligations to become effective. CV3 therefore represents more than just a construction milestone. It is another building delivered, another contracted revenue stream online, and a significant portion of the credit support behind the project now effective.

Following quarter-end, we also amended certain Fluidstack leases. Those amendments increased contracted capacity, added rent associated with tenant-requested scope changes, and established updated delivery schedules on a data hall-by-data hall basis. Nasser will cover construction and commissioning in greater detail, but the key milestones are straightforward. At CV4, we remain on track to begin energizing the first data hall in late September.

At CV5, we expect to begin energizing the first data hall in very early January. The first data hall at CB4 is already in commissioning, and we continue to work closely with Fluidstack, Google, and the broader project team to align infrastructure readiness with hardware deployment. The important point here is that CV3 is online and generating revenue, CV4 is in commissioning, and CV5 is advancing against the updated, customer-aligned schedule. That is execution, and it is increasingly visible in our financial profile, with high-power compute leasing representing the majority of our revenue domestically during the quarter.

While Lake Mariner continues to deliver, the second major theme is expansion. Nowhere is this more evident than in Kentucky. Following quarter-end, we executed a long-term lease with Anthropic for approximately 401 megawatts of critical IT capacity at our Justify Data campus in Hawesville. The agreement expands our relationship with Anthropic and represents approximately $19 billion of contracted revenue over the initial 20-year lease term.

The economics are highly attractive for our shareholders and reflect the value of controlling large-scale, power-secured infrastructure in a market where capacity is increasingly scarce. But the significance of the agreement goes well beyond its size. Lake Mariner demonstrates that we can take a legacy industrial power site and convert it into a large-scale operating high-power compute campus. Justify demonstrates that we can repeat the model in a new region.

We secured the site, controlled the power infrastructure, and converted that position into a long-duration contract with one of the leading companies in artificial intelligence. That is our model: control the infrastructure, contract capacity, finance it against long-duration revenue, and deliver it in phases. We also expanded our Kentucky platform through the acquisition of the Muskie Data Campus in Eastern Kentucky. Muskie is a gigawatt-scale development site and a prime example of the utility partnership path to power that we discussed on our last earnings call.

The campus is located within an established industrial park and is being developed in partnership with investment-grade Kentucky Power, an AEP company. Our electric service arrangements were entered into under a data center tariff approved by the Kentucky Public Service Commission, which provides for 1 gigawatt of electric service. Kentucky Power is expected to construct a new 345 kilovolt substation connected to AEP's existing 765 kV transmission network, with initial electric service expected in the fourth quarter of 2028.

This is not simply land with a queue position; it is a utility-supported development pathway with contracted electric service, defined infrastructure obligations, and a state-approved framework for large-scale data center development. The market too often treats a queue position or inclusion in a back study as equivalent to available power. It is not. The relevant and important questions are: when can the power be actually delivered, under what contract or commercial framework, and with what degree of infrastructure certainty?

Muskie provides considerably greater visibility for each of these points. Muskie also builds on the substantial momentum and relationships we've developed in Kentucky. The Commonwealth is increasingly attractive to prospective tenants because of its power infrastructure, business environment, and the constructive engagement we have seen from state, utility, and local stakeholders. Justify provides our near-term contracted delivery opportunity in Kentucky.

Muskie provides the next gigawatt-scale platform in our pipeline, and we are actively advancing commercialization discussions for the site. Given its near-term power availability, we are increasingly optimistic about the potential to expand the Muskie campus to as much as 2 gigawatts and accelerate portions of the current development timeline. In addition to Muskie, our pipeline includes additional expansion opportunities at Lake Mariner and Lake Hawkeye in New York, Chesapeake in Maryland, and there are many other sites we are actively evaluating.

Each is at a different stage, but collectively they provide multiple paths to power, customer contracting, and phased delivery rather than dependence on a single market or interconnection process. As we expand the platform, we are also being disciplined about where we spend our time and capital. That's what drove our decision on Abernathy. Following quarter-end, we entered into an agreement to sell our entire interest in the Abernathy Joint Venture for approximately $530 million.

Abernathy is a great project, but at this point in TeraWulf's development it is simply not the right project or the best project for us to continue to own. Our strategy is increasingly focused on large-scale opportunities where we control the site, control the power infrastructure, the development process, and the customer relationship. All that drives long-term economics. The Abernathy transaction allows us to focus our management resources and capital on those opportunities.

It also demonstrates our ability to create value through development and selectively recycle capital into larger-scale projects that we directly control. The Anthropic lease demonstrates our ability to create long-duration contracted value. The Abernathy transaction demonstrates our ability to realize value and redeploy that capital into the next generation of growth. We've also recently cleared an important milestone at Chesapeake.

On July 29, the Federal Energy Regulatory Commission (FERC) authorized our proposed acquisition of the Morgantown site. That approval clears a significant regulatory condition towards closing. The site includes approximately 210 megawatts of existing grid-connected generation, substantial electrical infrastructure, and meaningful long-term expansion potential in one of the most power-constrained regions in the country.

Subject to the remaining closing conditions and required consents, Chesapeake offers the potential to develop an integrated generation, storage, and data center campus capable of supporting up to 1 gigawatt of data center capacity while serving large-scale compute demand in the most competitive region while supporting regional grid reliability. We have developed our pipeline this way deliberately. Regional diversity gives us access to different power markets and utility partners, but it also provides greater operational and security resilience. We do not want the platform dependent on one grid, one regulatory regime, or one source of generation.

Our portfolio includes utility-supported grid-connected campuses, sites with existing generation infrastructure, and locations capable of integrating generation and storage or supporting additional generation on the broader grid. We view behind-the-meter power primarily as a bridge to utility-supported grid-connected campuses. Over time, we believe the most reliable, resilient, and economically sustainable power solutions will be those interconnected with a larger utility system. That concept is becoming increasingly important.

The constraint on AI infrastructure is not demand; it is power, transmission, interconnection, and the ability to bring new infrastructure online responsibly. We have consistently said that data center infrastructure should be an asset to the grid, not a burden to it, and that is how we view Governor Hochul's recent Executive Order in New York. We do not believe the Executive Order will disrupt our development timing at either Lake Mariner or Lake Hawkeye. The TeraWulf compute buildout at Lake Mariner is already permitted, and Lake Hawkeye's is in the early stage of development, and it has not been impacted.

Importantly, the Governor has described the order as an effort to establish a framework, not a permanent ban on future data center development. We welcome such a framework. Responsible development at this scale necessarily requires careful consideration of environmental impact, grid reliability, cost allocation, and community priorities. We do not view those considerations as a binary choice between development and responsibility.

Instead, we work constructively with regulators, utilities, and local communities to address legitimate concerns, operate responsibly, and be an active and valuable long-term member and neighbor within the communities in which we operate. A clear framework should establish the rules of the road around reliability, cost allocation, resource use, generation, storage, and community impact so that credible projects can move forward responsibly. We believe increasingly formal requirements for large load development are inevitable across all major power markets, not only in New York.

The better approach is to prepare for reasonable standards now rather than assume projects can avoid them indefinitely. That means developing sites that can demonstrate credible and redundant power delivery, assume appropriate cost responsibility, and, where required, support additional nameplate generation capacity or otherwise help bring incremental generation and grid resources online. Many of the principles outlined by the Governor are entirely consistent with how TeraWulf already approaches development.

We understand power markets, generation, transmission, and believe clear standards will ultimately favor experienced, well-capitalized developers with credible infrastructure solutions and the demonstrated ability to execute. Increasingly, data center demand is also serving as a catalyst for long overdue investment in the nation's transmission and generation infrastructure. That is where TeraWulf is positioned. So when you step back, the progress is clear.

We've delivered CB3 and brought another contracted revenue stream online. CB4 and CB5 are advancing against updated, customer-aligned schedules. We've expanded our Kentucky platform through the Anthropic lease at Justify and the acquisition of Muskie. We've agreed to monetize Abernathy so we can focus our capital and management attention on larger-scale opportunities that we directly control, and we've cleared an important regulatory milestone at Chesapeake.

Together, these developments reinforce both the consistency and the depth of our strategy: build a regionally diversified pipeline with credible paths to power, contract with high-quality customers, deliver capacity in phases, and recycle capital where doing so creates long-term value for our shareholders. Based on the strength of the platform and the customer engagement we continue to see, we reaffirm our target of contracting an incremental 250 to 500 megawatts of critical IT capacity annually. We will pursue that growth with discipline and remain focused on power control, customer quality, execution certainty, and shareholder returns.

We have the sites, the capital, the people, and the customer demand. Now it is about delivering. With that, I'll turn it over to Nasser to discuss construction, commissioning, and the updated Lake Mariner delivery schedule. Nasr Thank you, Paul.

I'll focus my remarks on construction, commissioning, and delivery at Lake Mariner. As Paul noted, CB3 is fully online and generating lease revenue. With that building complete, our focus is now on executing against the updated delivery schedules for CB4 and CB5, which were developed in close coordination with our tenant. From an execution standpoint, the two most significant variables have been electrical labor availability and ongoing design optimization for our customer.

Electrical labor remains highly constrained across the data center industry. As the design and electrical scopes became more fully defined, we added a second electrical contractor and scaled the workforce to support approximately 1,000 electricians at peak. That additional capacity is important to maintaining the targeted delivery schedule. At the same time, working closely with Fluidstack, we continue to optimize the electrical, cooling, and operational requirements while design, procurement, and construction were already underway.

Although this added complexity to execution, it enabled our customer to establish a deployment standard tailored to the latest-generation hardware. With those resources and updated requirements now incorporated into the plan, we have greater visibility into the remaining work and remain confident in the revised delivery schedules. Let me now turn to commissioning and explain where CB4 stands today. Center commissioning generally progresses through six levels, from Level 0 through Level 5.

Level 0 covers design and planning, while Level 1 involves factory acceptance testing of major equipment before it is shipped to the site. Our current focus is on Levels 2 through 4. Level 2, or installation verification, confirms the major electrical, mechanical, and cooling equipment has been properly installed, connected, and configured. This is also when the tenant begins installing and tuning its cooling distribution equipment.

Level 3, for startup and pre-functional testing, is when individual systems are powered and tested under operating conditions. The customer also begins bringing server racks into the data hall and integrating them with the building's power, cooling, and control systems. In practical terms, Level 3 marks the transition from construction into live systems commissioning. Level 4, or functional performance testing, is the contractual delivery milestone.