TeraWulf, the world’s sixth-largest Bitcoin mining firm, is set to launch a new Bitcoin mining facility at the end of September, along with a potential partnership with a Magnificent Seven company.
The new Bitcoin (BTC) mining facility is set to go live at the beginning of September, according to Nazar Khan, co-founder and chief operating officer of TeraWulf.
Khan told Cointelegraph in an exclusive interview:
“Our WULF Den facility is a 2-megawatt facility that will come online next month. It’s a liquid-cooled design. What allowed us to expedite the timing was that we were building it inside an existing structure.”
TeraWulf logo. Source: TeraWulf
The launch of Wulf Den precedes the launch of TeraWulf’s milestone 20-megawatt facility, set to go live before the end of 2024.
Magnificent Seven partnership ahead for WULF?
TeraWulf is “actively engaging” with some of the biggest names in tech, including members of the Magnificent Seven, a moniker for the top-performing tech stocks: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.
When asked about a potential partnership, Khan told Cointelegraph that the discussions aren’t exclusively with the member companies of the Magnificent Seven but also companies in the wider tech sector. He explained:
“Our goal is to find a customer and partner that we want to grow with at the site… For a customer to credibly be able to take down 100MW or 200MW of capacity is a very significant sum of capital.”
Nazar Khan, TeraWulf, Interview with Cointelegraph’s Zoltan Vardai. Source: YouTube
Likely partners could include data centers or large artificial intelligence (AI) firms looking to tap into TeraWulf’s spare computing power.
TeraWulf is the most profitable miner on a per-share basis
On average, TeraWulf spends approximately $40,000 in production costs to mine an entire Bitcoin.
This is partly what makes TeraWulf one of the most profitable Bitcoin miners on a per-share basis, explained Khan:
“We believe our job is to produce Bitcoin at the lowest possible price, capture a spread, then move on in the second quarter. Our all-in fully loaded production costs, including every single cost in the company, is around $40,000 per Bitcoin.”
Nazar Khan, TeraWulf, Interview with Cointelegraph’s Zoltan Vardai. Source: YouTube
Khan added that TeraWulf sells Bitcoin daily due to the profitable spread.
This approach contrasts with the strategy of the world’s largest Bitcoin miner, Marathon Digital Holdings, which adopted a “full hodl” approach, which is crypto slang for “hold on for dear life.”
Marathon raised $250 million in August, aiming to buy more Bitcoin. It purchased $100 million worth of BTC in July, aiming to make it a strategic reserve asset.
Mining Bitcoin at home — Is it time to start? Source: YouTube
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