Bitcoin mining firm TeraWulf sold its stake in a 200 megawatt Bitcoin mining facility to its partner, Talen Energy, for $92 million — and said the 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 in building a 20-megawatt facility for hosting AI and high-performance computing 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 finish its “MB-5” Bitcoin mining building, which TeraWulf says may help lift its operating hashrate 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 that it was open to a merger to boost its operating hashrate but wouldn’t do so for the sake of “empire building.”
TeraWulf said it was focused on “organic growth” at its existing sites and shareholder returns.
Google Finance data shows that TeraWulf’s (WULF) share price rallied 8% to $4.71 on Oct. 3.
WULF’s change in share price on Oct. 3. Source: Google Finance
Talen now stands as the sole owner of the Nautilus mining site.
Still, Reuters reported in August that Talen was looking to sell its stake in the crypto miner.
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