Bitcoin mining company TeraWulf has sold its 25% stake in the nuclear-powered Nautilus Bitcoin mine to its joint venture partner Talen Energy for $92 million. The deal includes $85 million in cash and approximately 30,000 mining units valued at $7 million. TeraWulf plans to reinvest the proceeds into a data center for high-performance computing (HPC) and AI at its Lake Mariner facility. The new facility, called CB-1, is expected to be operational in the first quarter of 2025.
TeraWulf’s decision to sell its stake in Nautilus allows the company to achieve a 3.4x return on its investment. The funds will be used to develop the CB-1 facility, which will be designed to host HPC/AI data centers. Further, the company also intends to finish a mining building known as MB-5, and retain its operational target of over 13 EH/s in Q1 2025. The company’s efficiency in the mining fleet is also expected to be enhanced to 18.2 J/TH.
This sale demonstrates TeraWulf’s focus on operations excellence and cost control. In this way, TeraWulf is better preparing itself for future growth, extending its interest in Nautilus before the $0.02 / kWh power contract expires in June 2027. The company now aims to direct efforts to the Lake Mariner facility in New York, where it enjoys higher cost advantages and better power rates.
TeraWulf Plans Major Expansion with New AI/HPC Facilities in New York
TeraWulf also recently executed a 2 MW AI/HPC proof-of-concept project. The CB-1 facility is to be designed with a 16 MW IT load capacity and high-availability cooling systems. The future development plan is also backed by the development of a 50 MW building, CB-2, which is expected to be ready before Q2 2025.
Speaking of the transaction, CEO Paul Prager pointed out that TeraWulf is investing in areas that allow for the highest operational effectiveness and the greatest growth rates. He also added that the sale would help the company to expand in the segment of HPC/AI infrastructure and to improve the mining fleet. TeraWulf is focused on clean energy and the digital infrastructure space.
TeraWulf is expected to publish its third-quarter results for the year 2024 on November 12.
