TeraWulf Inc.

Greetings and welcome to the TerraWolf 2026 first quarter earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, John Larkin, Senior Vice President, Director of Investor Relations. Thank you. You may begin.

Thank you, Operator. Good morning and welcome to TerraWolf's first quarter 2026 earnings call. Joining me today are Chairman and CEO Paul Prager, CTO Nazir Khan, and 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. For a discussion of these risks, please refer to our filings with the SEC, available at sec.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'll turn the call over to our Chairman and CEO, Paul Prager.

Thanks, John, and good morning, everyone. The first quarter of 2026 was about execution. We exited 2025 with an established platform, including sites, contracts, capital, and strategy. And what you are seeing in Q1 is the early conversion of that foundation into operating performance and recurring revenue. That strategy continues to guide everything we do, controlling energy advantage sites, engineering infrastructure around power, and contracting long-term credit-backed AI capacity. At this point, we are moving from formation to delivery. You can see that most clearly in our operations. During this quarter, we continued scaling our HPC platform at Lake Mariner with 60 megawatts of critical IT capacity energized, and generating revenue as of March 31. Importantly, this is the first period where HPC leasing is meaningfully reflected in our financials, contributing $21 million of lease revenue during the quarter. At the same time, we are transitioning portions of our legacy mining footprint to support higher value HPC workloads. That transition is deliberate. Mining served its purpose. It enabled us to build infrastructure, monetize power, and develop operational expertise. But the future of this platform is contracted, long-duration compute infrastructure. That same focus on execution carries through to development. We continued advancing construction for FluidStack and Google at Lake Mariner while incorporating customer-driven design refinements. These are not disruptions. They reflect the reality of building infrastructure for sophisticated counterparties. We are building to evolving hardware and tenant requirements, not in anticipation of them, and that discipline reduces execution risk and improves long-term outcomes. DB3 at Lake Mariner remains on schedule, and we are working closely with Fluidstack and Google to coordinate energization with hardware deployment. Execution at this scale requires tight alignment between infrastructure readiness and customer deployment, and that coordination continues to progress well. At the same time, we are expanding our platform. Since year end, we have added meaningful new power-backed capacity, including the Hawesville, Kentucky site, a large-scale campus with immediate power availability and significant expansion potential. In parallel, we're progressing the Morgantown acquisition in Maryland, which remains subject to regulatory approval. We currently expect a FERC decision in the midsummer timeframe. Strategically, Morgantown is a highly attractive asset in one of the most power-constrained regions in the country. And that ties directly to how we think about power. We are not pursuing power as an input cost. We are structuring power as a core asset. If you step back, the broader AI build-out is accelerating, but it is increasingly constrained by power, including interconnection delays, transmission limitations, the need for new generation and transmission, and the capital and credit required to bring these assets online. The constraint is not GPUs. It is power. And in that environment, the industry is moving toward integrated campuses where generation, storage, and compute are designed together. That's exactly how TerraWolf operates. We are fundamentally a power company that builds digital infrastructure, not the other way around. We understand how to source and control power, how to permit, operate generation, how the grid behaves, and how to integrate these systems at scale. There are very few teams that can do all of that credibly and that continues to differentiate TerraWolf. Against that backdrop, demand remains very strong. We continue to see active engagement from hyperscalers and AI compute platforms across that portfolio. At Lake Mariner, We are executing against existing contracts. And in Kentucky, we are engaged in advanced negotiations. More broadly, when you look at the pipeline, the opportunity set continues to evolve. Given the state of interconnection queues, we believe there will be an increasing opportunity over time to partner directly with utilities to develop new sites and aggressively advance existing sites. Utilities are going to be looking for partners with the experience and credibility and the capital required to actually deliver on these projects. And we believe that TerraWolf is very well positioned. We also believe that the market is moving towards a higher bar for execution certainty around grid access itself. Securing queue position alone is no longer enough. Utilities and regulators increasingly require confidence that projects can deliver the infrastructure, equipment, and financial support needed to come online at scale. Over time, factors like procurement capability, delivery credibility, financial assurance become increasingly important differentiators. That dynamic favors scale, well-capitalized operators with real development and power experience. Our platform is designed to operate across all three paths to power. Immediate access, as we have in Oddsville. Bring your own generation, as we are pursuing in Morgantown. And increasingly, utility partnerships, as interconnection queues are rationalized and prioritized. That is a structural shift in how this market will develop and plays directly to Terawolf's strengths. Now let me spend a moment on Kentucky. I have said that we expect to have a customer in place in the second quarter, and I remain highly confident. We are in late-stage negotiations. The process has been extremely competitive, and engagement is exactly where we want it to be. At the same time, We recognize that projects like these raise real questions around environmental impact and power costs. We take those seriously. Our approach is to engage early and transparently and to help communities understand how these facilities serve as long-term economic engines through jobs, investment, and infrastructure, while being thoughtful and responsible to their impact. That is core to how we execute. And importantly, even with that confidence, our approach remains disciplined. We do not build on speculation. We contract first, deploy capital second. That discipline shows up in how we evaluate opportunities, focusing on durable power control, scalable development, credit-backed counterparties, and capital efficiency. We review a significant number of opportunities, but only a small subset meets that high bar. And that same discipline applies to capital. We entered 2026 with substantial liquidity and a fully funded development pipeline with $3.1 billion of cash and restricted cash on the balance sheet at quarter end. That capital is being deployed into contracted, or actively commercializing assets, not speculative builds. And our financing strategy continues to align capital with long-term cash flows. You can see the transition of the business model clearly in our financials. In the quarter, digital asset revenue was about $13 million, while HPC leasing contributed $21 million. That shift will continue. and the business will be increasingly driven by stable, contracted, high-quality credit-backed revenue. That is the end state we have been building toward. So when you step back, the Terrell story is consistent. The strategy is unchanged. The platform is in place. The sites are secured. Demand is strong. Capital is in place. We are locked and loaded. From here, it is about execution, delivering capacity, energizing megawatts, and converting contracts into durable recurring cash flow. That is what will define 2026. I'll now turn it over to Nazir to provide an update on construction and delivery.