TeraWulf sells $92 million stake in nuclear-powered bitcoin mine to fund AI diversification
Bitcoin miner TeraWulf has sold its 25% equity interest in a nuclear-powered bitcoin mining facility for approximately $92 million as it seeks to fund the expansion of high-performance computing and AI data center hosting services
TeraWulf has sold a 25% stake in the Nautilus Cryptomine joint venture to a subsidiary of Talen Energy Corporation for approximately $92 million.
The bitcoin miner intends to reinvest the capital into construction at its Lake Mariner facility in New York, which focuses on hosting HPC/AI data centers.
Bitcoin miner TeraWulf has sold its 25% equity interest in a nuclear-powered bitcoin mining facility for approximately $92 million as it seeks to fund the expansion of high-performance computing and AI data center hosting services.
TeraWulf's stake in the Nautilus Cryptomine joint venture, located near the Susquehanna nuclear power plant in Pennsylvania, was sold to its partner, a subsidiary of Talen Energy Corporation. Completion of the sale resulted in a 3.4x return on TeraWulf's investment, the firm reported on Thursday.
The deal consists of $85 million in cash and approximately 30,000 Talen-contributed bitcoin miners and associated equipment valued at $7 million, TeraWulf said. The firm intends to reinvest the capital into construction at its wholly-owned flagship Lake Mariner facility in New York, which is designed for hosting HPC/AI data centers, as well as bitcoin mining operations.
TeraWulf recently completed a 2 MW HPC/AI proof-of-concept project at the Lake Mariner facility, designed to support current and next-generation GPU technology. It is also constructing a 20 MW liquid-cooled colocation building at the site, expected to be operational by the first quarter of 2025.
The decision to monetize its stake in the Nautilus mine comes ahead of the expiration of a power contract and ground lease in June 2027, as the firm aims to take advantage of superior cost efficiency and lower expected future energy prices at Lake Mariner.
"This transaction further aligns TeraWulf's focus and investments with where we have the most operational efficiency, the greatest growth potential and the best opportunity to drive incremental value for shareholders," TeraWulf CEO Paul Prager said. "Looking ahead, we are focused on ensuring TeraWulf is best positioned to benefit from the growing demand for HPC/AI by meeting the needs of high-quality customers who are looking for power availability and infrastructure that can meet their substantial requirements over the long term."
