TeraWulf’s Bitcoin production has fallen by 21% in Q2 2024.
The firm is expanding to high-performance computing and AI, adding 50 MW capacity by Q1 2025.
Bitcoin mining firm TeraWulf’s Q2 2024 financial report disclosed a 21.4% drop in Bitcoin production, totaling 699 BTC compared to the previous year’s second quarter. Amidst the drop, TeraWulf generated $35.6 million in revenue, more than double its earnings of $15.5 million from the previous year.
Moreover, the firm’s gross profit has increased to $21.7 million in Q2 2024 compared to Q2 2023’s $10.3 million. The total self-mining hash rate capacity at the Lake Mariner Facility is 8.8 EH/s as of June 30, 2024, marking an increase of 79.6% from the prior year.
Patrick Fleury, CFO of TeraWulf, stated:
“In the second quarter of 2024, TeraWulf delivered solid financial performance, even in a challenging fundamental business environment following the Bitcoin reward halving in April, mining a total of 699 Bitcoin across our facilities. During the quarter, we maintained our focus on cost management, achieving quarter-over-quarter reductions in power costs at Lake Mariner and SG&A expenses.”
As per the official release, the company’s self-mining output has dropped to 539 BTC at its Lake Mariner Facility from 699 BTC in Q2 2023. Moreover, the power cost of self-mined Bitcoin for TeraWulf has increased by 243% year-over-year, rising to $22,954 per BTC in Q2 2024 from $6,688 in the previous year. Besides, the surge in costs might be attributed to the doubling in network difficulty and the impact of Bitcoin halving in April 2024, which reduced the block rewards for miners.
Upcoming Plans for TeraWulf’s Bitcoin Mining Operations
TeraWulf is focusing on high-performance computing (HPC) and artificial intelligence (AI), investing in a 128-GPU cluster from tech giant NVIDIA. Moreover, the firm has begun construction on Building 5 at its Lake Mariner facility. It aims to potentially increase TeraWulf’s Bitcoin mining capacity at the site by up to 2.5 EH/s and provide an additional 50 megawatts of infrastructure capacity by Q1 2025.
Paul Prager, CEO of TeraWulf, mentions that 600MW of owned and scalable infrastructure is a key advantage, and the company is shifting into HPC. This infrastructure aids in meeting the growing demand for high-power data center capabilities to sustain long-term growth and profitability.
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