#ChristmasMarketAnalysis
TeraWulf expands into artificial intelligence amid rising Bitcoin mining costs🚨🚨🚨🚨🚨
According to Cointelegraph, the Bitcoin mining company TeraWulf is going to lease more than 70 megawatts of data center infrastructure to enhance its revenue streams from artificial intelligence (AI). This strategic move comes at a time when the company is facing rising costs of Bitcoin mining. On December 23, TeraWulf announced that the artificial intelligence and cloud provider Core42 would lease the infrastructure of its Lake Mariner facilities in northern New York State. This announcement coincided with a 12% drop in TeraWulf's stock price, reflecting a broader market decline.
TeraWulf emphasized that the data center leases signify a strategic expansion into AI-driven computing, which complements its existing Bitcoin mining operations. The infrastructure is expected to be operational in phases between the first and third quarters of 2025. CEO Paul Prager highlighted the growing demand for scalable and energy-efficient infrastructure, noting that the partnership with Core42 offers significant opportunities in both AI and Bitcoin mining. Prager stated that this agreement not only diversifies TeraWulf's revenue sources but also enhances its long-term earnings potential.
The company's foray into AI comes at a time when the average cash cost to mine a Bitcoin has risen by 13% to $55,950 in the third quarter of 2024, according to CoinShares. This increase in production costs has led public Bitcoin miners to lose market share in the Bitcoin network's hash rate. CoinShares also pointed out that several Bitcoin miners have reduced hash rate growth to invest more in AI.
