TeraWulf, a prominent player in the bitcoin mining sector, has divested a 25% equity interest in its nuclear-powered bitcoin mining facility for approximately $92 million. This strategic move aims to finance the growth of high-performance computing (HPC) and AI data center hosting services.
TeraWulf's stake in the Nautilus Cryptomine joint venture, situated near the Susquehanna nuclear power plant in Pennsylvania, was acquired by its partner, a subsidiary of Talen Energy Corporation. The sale yielded a remarkable 3.4x return on TeraWulf’s investment, as reported by the firm.
The transaction includes $85 million in cash and about 30,000 Talen-contributed bitcoin miners and related equipment valued at $7 million. TeraWulf plans to reinvest the proceeds into the construction of its flagship Lake Mariner facility in New York, which will host HPC/AI data centers and bitcoin mining operations.
Recently, TeraWulf completed a 2 MW HPC/AI proof-of-concept project at the Lake Mariner site, designed to support both current and next-generation GPU technology. Additionally, the company is building a 20 MW liquid-cooled colocation facility at this location, set to be operational by early 2025.
The decision to monetize its Nautilus mine stake precedes the expiration of a power contract and ground lease in June 2027. This timing allows TeraWulf to leverage superior cost efficiency and projected lower future energy prices at Lake Mariner.
CEO Paul Prager stated, “This transaction further aligns TeraWulf’s focus and investments with where we have the most operational efficiency, the greatest growth potential, and the best opportunity to drive incremental value for shareholders.” He emphasized the company’s commitment to meeting the increasing demand for HPC/AI, ensuring availability and infrastructure for high-quality customers.
TeraWulf is scheduled to host its third-quarter earnings call on November 12. The company's stock experienced an 8% increase on Thursday, closing at $4.71, reflecting a 61% rise year-to-date, according to TradingView.
TeraWulf is among bitcoin mining competitors like IREN and Core Scientific, which are diversifying towards AI data centers to capture emerging demand while mitigating bitcoin volatility. However, traditional miners like CleanSpark, Marathon, and Riot argue that bitcoin mining offers quicker returns due to lower infrastructure costs.
TeraWulf is currently the sixth-largest public bitcoin miner, with a market cap of $1.8 billion, accounting for approximately 7.5% market share in the industry.
