Bitcoin miner TeraWulf sells 25% stake in Nautilus for $92 million

Bitcoin mining company TeraWulf has sold its 25% stake in joint venture Nautilus Cryptomine to its partner, a subsidiary of Talen Energy, in a deal worth around $92 million.

The company plans to use the funds to expand its operations at the Lake Mariner facility, including construction of the 20 MW CB-1 operation to house AI and high-performance computing data centers ( HPC). In addition, TeraWulf also said it is working to complete its fifth mining building, MB-5, and aims to reach a capacity of more than 13 EH/sa by early 2025 while improving mining efficiency at 18.2 J/TH.

TeraWulf’s strategic move

According to the official press release, TeraWulf is strategically preparing for the future by monetizing its interest in a power contract and ground lease that will expire in June 2027. This move is expected to allow it to focus resources on its Lake Mariner facility in New York. , where you can benefit from lower energy costs.

Selling its minority stake in Nautilus will also simplify its financial statements, improving clarity for shareholders. TeraWulf recently completed a 2 MW proof-of-concept project for AI and High Performance Computing (HPC) supporting current and next-generation GPU technologies.

The company is also building a 20 MW colocation facility, CB-1, at Lake Mariner, designed to support a 16 MW critical IT load with advanced cooling and redundancy features.

The reinvestment of proceeds from the sale will keep CB-1 on schedule to become operational in the first quarter of 2025. A subsequent building, CB-2, is scheduled for completion in the second quarter of 2025 and aims to a gross capacity of 50 MW.

Commenting on the latest development, TeraWulf CEO Paul Prager said:

“Monetizing our interest in Nautilus prior to the 2027 expiration of the highly advantageous 2¢/kWh power contract allows us to capture a significant premium on our investment, provide significant capital to invest in our HPC infrastructure/ AI and capitalize on our favorable structure. Miner purchase agreement to upgrade our mining fleet at a discount to the current market price.”

TeraWulf Mixed Q2 2024 Results

TeraWulf’s second-quarter earnings report, released in August, showed mixed results. As previously reported, the company mined 699 BTC, down 21% from last year, but revenue came in at $35.6 million, slightly above the $35.4 million expected.

However, the company reported a loss of $0.03 per share, worse than the expected loss of $0.02. In addition, mining costs increased by 243% due to the increased difficulty of the network and the effects of the Bitcoin halving in April.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!