Bitcoin miner TeraWulf has ramped up efforts to expand its BTC mining and AI data computing operations. According to a recent report, the firm sold its share in the Nautilus Cryptomine to Talen Energy for $92 million.
It will invest the proceeds into AI data centers and buy better Bitcoin miners.
TeraWulf Offloads Stake for $92 Million
TeraWulf owned 25% of the Nautilus Cryptomine, a 200-megawatt BTC mining facility. However, according to reports, it recently sold the stake to Talen Energy for $92 million, including $85 million in cash. Also, the deal comes with 30,000 miners and other equipment worth $7 million.
TareWulf’s CEO, Paul Prager, said, “This sale allows TeraWulf to achieve 3.4x return investment in Nautilus.”
With this deal, Talen Energy becomes the sole owner of the Nautilus site, while TeraWulf focuses on expanding its operations in AI and high-performance data centers.
The decision to sell the stake allows TeraWulf to monetize its interest before the current power contract expires. It helps the company prepare for lower future power prices and greater cost efficiency.
Reinvesting the Proceeds for Growth
According to the company’s press release, TeraWulf plans to reinvest most of the proceeds in Bitcoin mining and AI.
One of the main focuses will be building a 20-megawatt facility at their Lake Mariner site in New York. This new facility will host AI and high-performance computing data centers, boosting TeraWulf’s presence in the tech space.
Part of the press statement reads: “The sale of TeraWulf’s minority interest in Nautilus will streamline its consolidated financial statements, enhancing transparency and comparability for shareholders.”
Moreover, TeraWulf will use part of the funds to purchase more Bitcoin miners at a discount. Its favorable miner purchase agreement allows it to buy equipment at a lower price than the current market rate, significantly reducing overall mining costs.
TeraWulf is also working to complete its new “MB-5” Bitcoin mining facility. Once finished, it could increase the company’s operating hashrate to 13 exahashes per second (EH/s) by early 2025.
Market Response
Investors think TeraWulf made a smart move, as the stock market reacted positively after the announcement. According to data from Google Finance, TeraWulf’s stock price went up by 8% following the news.
The data shows that the stock closed the market yesterday at $4.36 but traded at $4.71.
Meanwhile, TeraWulf isn’t stopping here. It wants to keep growing but in an intelligent way. In July, the company said it is considering mergers and acquisitions to expand its market presence.
“We will certainly consider inorganic growth opportunities through M&A [but] expanding merely for growth’s sake, or ’empire building,’ without considering profitability makes no sense,” said the Chief Strategic Officer, Kerri Langlais.
