Miner TeraWulf has sold its 25 percent stake in nuclear bitcoin mining for approximately $92 million to fund the expansion of hosting services for its high-performance computing and artificial intelligence center.
TerraWulf's stake in the Nautilus Cryptomine joint venture, located near the Susquehanna nuclear power plant in Pennsylvania, was sold to a subsidiary of partner Talen Energy Corporation. Completion of the transaction resulted in a 3.4 times return on TeraWulf's investment, the company said on Thursday.
TeraWulf said the deal was valued at $85 million in cash, about 30,000 #bitcoin miners provided by Talen, and related equipment worth $7 million. The company plans to reinvest the proceeds into the construction of its flagship Lake Mariner facility in New York City, which will be dedicated not only to bitcoin #mining but also to an HPC/AI data center.
Teraulf recently completed a 2MW HPC/AI center project in Lake Mariner. The company is also constructing a 20 MW liquid-cooled co-location building at the site, which is expected to be commissioned in Q1 2025.
The decision to sell the Nautilus mine interest was made in anticipation of the expiration of the power supply contract and ground lease in June 2027, as the company seeks to take advantage of the higher cost efficiencies and lower power prices expected in the future at Lake Mariner.
Paul Prager, CEO of TerraWolf, said: This transaction further reinforces TerraWolf's focus and investment in areas where it is most operationally efficient, has the greatest growth potential and the best opportunity to create additional value for its shareholders.
As we look to the future, we are focused on meeting the infrastructure needs of our blue chip customers to meet their capacity availability and critical long-term requirements, enabling TerraWolf to meet the growing demand for HPC/AI.
TeraWulf will announce its third quarter results on Nov.
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