Bitcoin mining company TeraWulf has sold its 25% stake in the Nautilus Cryptomine, a 200-megawatt Bitcoin mining facility, to its partner Talen Energy for $92 million. TeraWulf plans to use the proceeds to expand its Bitcoin mining operations and invest in artificial intelligence (AI) and high-performance computing (HPC).
Strategic Reinvestment Plans
In an Oct. 3 statement, TeraWulf highlighted that this transaction has provided them with a 3.4x return on their original investment in Nautilus. The company intends to reinvest a large portion of the $92 million into:
- Constructing a 20-megawatt facility at its Lake Mariner site in western New York, which will host AI and HPC data centers.
- Purchasing additional Bitcoin miners at a discount to the current market price, boosting their mining capacity.
By focusing on AI and HPC streams, TeraWulf aims to diversify its revenue streams while upgrading its Bitcoin mining fleet. The firm emphasized that this reinvestment will reduce its cost of Bitcoin mining and improve overall profitability. Moreover, the company reaffirmed its commitment to using predominantly zero-carbon energy for its operations.
Details of the $92 Million Transaction
The deal consists of $85 million in cash and 30,000 miners and related equipment contributed by Talen, valued at $7 million. TeraWulf is also working on completing the construction of its “MB-5” Bitcoin mining building, which it hopes will increase its operational hash rate to 13 exahashes per second by March 31, 2025.
Focus on Shareholder Value and Growth
TeraWulf’s CEO stressed that the sale is part of a broader strategy focused on operational efficiency, cost management, and increasing long-term shareholder value. The company has shown that it remains committed to organic growth and enhancing performance at its existing sites, rather than pursuing mergers or acquisitions for rapid expansion.
TeraWulf’s share price surged 8% to $4.71 following the announcement, according to Google Finance.
Meanwhile, Talen Energy, which now fully owns the Nautilus Cryptomine, has reportedly been considering selling its stake in the Pennsylvania-based nuclear plant, as noted in an August report by Reuters.
