Terawulf Sells 25% Stake, Plans to Increase Mining Equipment Efficiency

Since July, Terawulf has been actively working to increase its capacity after fully paying off its debt. As part of this strategy, the company intends to build a 20-megawatt high-performance computing (HPC) data center that will be used for AI centers and mining. The facility, called CB-1, will be located at the company's main facility in Lake Mariner, New York, due to the availability of electricity in the region.

The sale of a 25% stake in Nautilus, a subsidiary of Talen Energy Corp., allowed Terawulf to earn 3.4 times its initial investment. Of the total deal valued at $92 million, $85 million was paid in cash, while the remainder consisted of 30,000 mining rigs and $7 million worth of equipment provided by Talen.

According to Terawulf CEO Paul Prager, the deal was extremely beneficial for the company as it was able to receive a significant premium for its investment.

Along with the launch of CB-1, the company also plans to complete the construction of a mining building called “MB-5”. This will improve the efficiency of the mining equipment and achieve a power consumption level of 18.2 J/TH. The construction of CB-1 is scheduled to be completed in Q1 2025, and is expected to not only improve overall productivity but also reduce mining costs while supporting the company’s commitment to using mostly carbon-free energy.

Amid these developments, Terawulf (WULF) shares fell 2.6%, according to Seekingalpha, while other major companies like Marathon Digital and Riot Blockchain also faced profit-related problems. However, Terawulf, like Core Scientific, has benefited from its use of its AI hosting capabilities, allowing the company to stay ahead of its competitors in the mining market.