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TeraWulf said it will use the proceeds to buy cheaper Bitcoin miners and expand its AI and high-performance computing streams.
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Bitcoin mining firm TeraWulf has just sold its stake in a 200 megawatt Bitcoin mining facility to its partner, Talen Energy, for $92 million — and says its proceeds will go toward AI and Bitcoin mining.
“This transaction allows TeraWulf to achieve a 3.4x return on its investment in Nautilus,” TeraWulf said in an Oct. 3 statement.
TeraWulf intends to reinvest much of the $92 million into the construction of a 20 megawatt facility for hosting AI and HPC data centers at its Lake Mariner base in western New York and buy more Bitcoin (BTC) miners.
“[It will] provide significant capital to invest into our HPC/AI infrastructure and capitalize on our favorably structured miner purchase agreement to upgrade our mining fleet at a discount to the current market price.”
TeraWulf said the move will lower its cost-to-mine and improve overall profitability while allowing the firm to maintain its commitment to predominantly utilizing zero-carbon energy.
Source: Kerri Langlais
The $92 million comprises $85 million in cash and 30,000 Talen-contributed miners and related equipment — valued at $7 million.
The firm is also looking to complete the construction of its “MB-5” Bitcoin mining building which TeraWulf hopes will help lift its operational hash rate to 13 exahashes per second before March. 31, 2025.
“This transaction underscores TeraWulf’s dedication to operational efficiency, cost management, and long-term shareholder value, while also demonstrating proactive risk management.”
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In July, TeraWulf told Cointelegraph it was open to a merger to potentially boost its operating hash rate but wouldn’t do so for the sake of “empire building.”
Instead, TeraWulf said it was more focused on “organic growth” at its existing sites and shareholder returns.
TeraWulf’s (WULF) share price rallied 8% to $4.71 on Oct. 3, Google Finance data shows.
WULF’s change in share price on Oct. 3. Source: Google Finance
Talen now stands as the sole owner of the Nautilus mining site.
However, it was recently looking to sell its entire stake in the Pennsylvania nuclear plant, Reuters reported in August.
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This article first appeared at Cointelegraph.com News
