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Bitcoin (BTC) mining company TeraWulf has experienced a significant rise in BTC rewards following an expansion of its mining capacity in the first half of 2023.
As per the latest quarterly report submitted to the United States Securities and Exchange Commission, TeraWulf mined a total of 1,441 BTC during the first half of the year. In Q1, the firm mined 508 BTC, while it added another 375 self-mined BTC to its holdings in Q2.
The increase in hash rate and mined BTC also contributed to a rise in quarterly revenue for the company, which grew from $11.5 million to $15.5 million in Q2. The firm attributed its improved quarterly financial performance to its enhanced hash rate and the recovering market value of Bitcoin.
Related: TeraWulf goes nuclear: 8,000 rigs spool up in Nautilus mining facility
The company currently operates over 50,000 next-generation Bitcoin miners at its Lake Mariner site in New York and its Pennsylvania nuclear-powered Nautilus facility. TeraWulf’s operational hash rate stands at 5.5 exahashes per second (EH/s), with a total capacity of 160 megawatts (MW) for miners across both locations.
TeraWulf's nuclear-powered Nautilus mining location.
The company also announced plans to expand its operations at Lake Mariner by an additional 43 MW by the end of 2023. The new facility in New York is expected to accommodate 18,500 new generation S19j XP miners from the Chinese manufacturer Bitmain.
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TeraWulf projected that the additional capacity at Lake Mariner will boost its self-mining hash rate by an extra 58%, increasing it from 5.0 EH/s to 7.9 EH/s.
In contrast, Hut8 reported a decline in hash rate and self-mined Bitcoin in Q2 of 2023, as indicated in its mid-year results. The company mined 399 BTC in Q2, reflecting a 58% decrease compared to Q2 2022.
Hut8 attributed the reduction in mined BTC to three main factors: the overall rise in Bitcoin mining difficulty, the suspension of operations at its North Bay Facility, and ongoing electrical issues at its Drumheller site.
Related: Bitcoin hash rate spikes as analysts say miners coming back online
Hut8 is also diversifying its infrastructure usage beyond just Bitcoin mining. Its high-performance computing division continues to generate an average of $4 million per quarter, with expectations for growth once its five-year agreement as a computing infrastructure provider to Interior Health commences toward the end of 2023.
Hut8 noted that its Drumheller site has been hindered by elevated energy input levels, which have caused some of its mining equipment to fail. The firm reported that 20% of its installed hash rate has been impacted as a result.
The company’s self-mined Bitcoin holdings currently total 9,136 BTC, valued at approximately $368.7 million. Hut8 sold 396 of the 399 BTC it mined in Q2, generating $14.7 million in revenue. The firm anticipates an increase in its hash rate capacity upon the completion of a planned merger with US Bitcoin.
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