Terawulf Partners with Talen Energy to Strengthen Mining Operations

Bitcoin miner Terawulf has sold a 25% stake to its partner, Talen Energy, in a transaction worth approximately $92 million. The company plans to reinvest the proceeds into improving its AI and Bitcoin mining operations, as detailed in an official announcement.

Since paying off its debts in July, Terawulf has been preparing to expand its operational infrastructure. As part of this strategy, the company intends to construct a new 20-megawatt high-performance computing (HPC) facility called CB-1. This facility will be situated at Terawulf's flagship Lake Mariner site in New York, which is favored for its low-cost power.

The equity sale also involves a 25% interest in Nautilus, a subsidiary of Talen Energy Corp., which has allowed Terawulf to achieve a 3.4x return on its investment. The $92 million deal comprises $85 million in cash along with 30,000 Bitcoin miners and equipment contributed by Talen, valued at about $7 million.

Paul Prager, CEO of Terawulf, described the transaction as “highly advantageous,” stating it enables the company to secure a significant premium for future investments. In addition to the CB-1 facility, Terawulf is also focused on completing the construction of a new mining building, referred to as “MB-5.” The aim is to enhance the efficiency of the mining fleet, targeting a performance metric of 18.2 J/TH.

These developments are anticipated to bring the CB-1 facility online in Q1 2025, significantly boosting the mining fleet’s efficiency, lowering the cost-to-mine, and improving overall profitability while maintaining a commitment to using predominantly zero-carbon energy sources.

In comparison to other miners, Terawulf and Core Scientific have found success by pivoting towards AI hosting, while larger miners like Marathon Digital and Riot Blockchain have faced stock declines this year amid profitability challenges.

Following the announcement of the 25% stake sale, Terawulf's stock (WULF) saw a decline of 2.6% on Thursday, according to data from Seeking Alpha (MarketBeat)(CoinMarketCap).