Originally published on: October 04, 2024
Bitcoin mining company TeraWulf recently announced the sale of its 25% stake in the Nautilus Cryptomine to its partner, Talen Energy, for a whopping $92 million. The proceeds from the sale will be used to fund TeraWulf’s initiatives in artificial intelligence (AI) and Bitcoin mining.
In a statement released on Oct. 3, TeraWulf expressed satisfaction with the transaction, citing a 3.4x return on its investment in Nautilus. The company plans to reinvest a significant portion of the $92 million into constructing a new 20-megawatt facility for hosting AI and high-performance computing data centers at its Lake Mariner location in western New York, as well as purchasing more Bitcoin miners.
By expanding its facilities and acquiring additional mining equipment, TeraWulf aims to reduce its cost of mining, enhance profitability, and uphold its commitment to using predominantly zero-carbon energy sources.
The $92 million deal includes $85 million in cash and 30,000 miners and associated equipment contributed by Talen, valued at $7 million. TeraWulf anticipates that the completion of its “MB-5” Bitcoin mining building will significantly increase its operating hashrate to 13 exahashes per second by March 31, 2025.
While TeraWulf previously expressed openness to a merger to boost its operating hashrate, the company remains focused on organic growth at its current sites and delivering returns to its shareholders. The company’s stock price, traded under the ticker symbol WULF, surged by 8% to $4.71 following the announcement on Oct. 3.
With Talen Energy now assuming full ownership of the Nautilus mining site, TeraWulf and its partners continue to navigate the evolving landscape of Bitcoin mining and investment opportunities in the cryptocurrency industry.
