Tim Horan

Tim Horan asked if the pricing and terms for the Kentucky site could be materially better than past deals. He also questioned the feasibility of the ambitious construction schedule, specifically regarding labor, equipment, and permits.

Answer

Paul Prager, Co-Founder, Chairman, and CEO, stated that Kentucky offers competitive pricing due to immediate power availability and a proven design. He noted the availability of construction expertise and the engagement of Fluor as a world-class contractor. Nazar Khan, Co-Founder and Chief Technology Officer, added that timelines reflect ongoing discussions with Fluor and efforts to secure labor, emphasizing that project economics are evaluated on an unlevered yield basis, aiming for historical or better returns.

Tim Horan asked if the pricing and terms for the Kentucky site could be materially better than past deals and questioned the ambitious construction schedule, inquiring about labor, equipment, and permits.

Answer

Paul Prager (Co-Founder, Chairman, and CEO, TeraWulf) noted Kentucky's strong labor pool and the engagement of Fluor, a world-class contractor. He stated that immediate power availability in Kentucky supports competitive pricing. Nazar Khan (Co-Founder and Chief Technology Officer, TeraWulf) confirmed the second half of 2027 timeline for Kentucky is based on extensive discussions with Fluor and ongoing labor acquisition efforts. He reiterated that projects are evaluated on an unlevered yield basis, aiming for consistency or improvement over historical performance.

Tim Horan sought clarification on whether reported stock compensation numbers would decrease in line with the increase in SG&A. He also asked for the PNT revenue in 2025 and about the deployment of PNT on drones, specifically in war zones. Further questions included the new ASIC's bandwidth for drone navigation, the difficulty of blocking or spoofing Iridium's PNT signal compared to GPS, and whether it's easier for one company to control spectrum or for it to be shared to increase utilization.

Answer

CFO Vince O'Neill confirmed a corresponding reduction in stock compensation, which is neutral to GAAP financials. He stated PNT revenue is included in 'hosted payload and other' but not broken out, though CEO Matt Desch added it's more than $10 million. Matt Desch confirmed PNT deployment in UAVs, seeing it as a significant growth area, especially with the new ASIC, but clarified the chip is for a powerful location signal, not high-bandwidth communication. He noted Iridium's PNT signal is '1000 times more difficult' to spoof than GPS. Regarding spectrum, Matt Desch stated Iridium is interested in approaches that maximize shareholder value, without specifying sharing versus single control.

Tim Horan inquired about spectrum utilization, specifically whether it's easier for one company to share or control all of it, and the current versus potential utilization.

Answer

CEO Matt Desch stated that Iridium is interested in approaches that maximize shareholder value, but did not elaborate on specific strategies for spectrum utilization or control.

Tim Horan asked about the percentage of the world EchoStar's spectrum covers compared to Iridium's global coverage, the size of the PNT opportunity and Iridium's ability to hit revenue targets, and expectations for near-term revenue growth given the withdrawal of longer-term guidance.

Answer

CEO Matt Desch explained that spectrum coverage is complex due to ITU priority country by country, with Iridium having #1 priority in many nations. He noted EchoStar's geostationary spectrum requires reallocation and approval, which will take time, but acknowledged Starlink's potential for a more global system faster than anticipated. Mr. Desch expressed increased bullishness on PNT, seeing big opportunities despite lumpy timing, and highlighted its competitive advantage and complementarity to IoT. He preferred to provide specific near-term revenue guidance in February but reiterated confidence in cash flow projections.