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Bitcoin miner Terawulf has divested its 25% interest to partner company Talen Energy in a deal valued at $92 million. The funds will be reinvested to improve AI and Bitcoin mining operations, according to the official announcement.
Since settling all debts in July, Terawulf has been strategizing to expand its operational infrastructure capacity. In this context, the miner intends to construct a 20-megawatt facility focused on high-performance computing (HPC) and AI data centers.
Named CB-1, the facility will be situated at its primary Lake Mariner site in New York, chosen for its low-cost electricity.
Additionally, the sale of a 25% equity stake in Nautilus, a subsidiary of Talen Energy Corp., enables Terawulf to realize a 3.4x return on its investment.
The $92 million comprises $85 million in cash and 30,000 Bitcoin miners and equipment contributed by Talen, valued at $7 million.
Today we announced the sale of our 25% equity interest in the Nautilus Cryptomine joint venture to our partner, a subsidiary of Talen Energy.
This transaction results in a 3.4x return on our investment in Nautilus, valued at ~$92 million consisting of $85 million in cash and…— TeraWulf (@TeraWulfInc) October 3, 2024
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Paul Prager, CEO of TeraWulf, described the transaction as “highly advantageous,” enabling the company to secure a substantial premium for its investment.
TeraWulf also plans to finalize the construction of the mining building 5, “MB-5,” in conjunction with CB-1. With the establishment of the mining building, it aims to improve the efficiency of its mining fleet to achieve 18.2 J/TH.
“Together, these actions are expected to bring CB-1 online in Q1 2025, significantly enhance our mining fleet’s efficiency, reduce our cost-to-mine, and improve overall profitability, all while maintaining our commitment to utilizing predominantly zero-carbon energy.”
In comparison to other miners, TeraWulf and Core Scientific have excelled by entering the AI hosting sector. Meanwhile, the largest miners by computing power, Marathon Digital and Riot Blockchain, have seen their stock values decline this year due to profitability issues.
Following the announcement of the 25% stake sale, TeraWulf (WULF) shares fell by 2.6% on Thursday, according to Seekingalpha data.
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