TeraWulf offloads 25% Nautilus stake for $92M

Bitcoin (CRYPTO:BTC) mining company Terawulf has sold its 25% stake in the Nautilus Cryptomine joint venture for approximately $92 million.

This sale, which includes $85 million in cash and $7 million in mining equipment, marks a strategic shift for the company as it focuses on expanding its high-performance computing (HPC) and artificial intelligence (AI) infrastructure at its Lake Mariner facility.

According to the company’s announcement, Terawulf plans to reinvest the proceeds into the construction of a new 20-megawatt colocation building (CB-1), which is expected to begin operations in early 2025.

This move is seen as part of Terawulf’s efforts to increase operational efficiency and drive value for shareholders.

“This transaction further aligns Terawulf’s focus and investments with where we have the most operational efficiency, the greatest growth potential, and the best opportunity to drive incremental value for shareholders,” said Paul Prager, CEO of Terawulf.

In addition to its focus on AI and HPC, Terawulf remains committed to its Bitcoin mining operations.

The company plans to upgrade its mining fleet at the Lake Mariner facility, targeting a capacity of 13 exahash per second (EH/s) by the first quarter of 2025.

Terawulf is also working on completing another colocation building, CB-2, which will have 50 megawatts of capacity and is expected to be operational by mid-2025.

Many Bitcoin miners have shifted towards AI and HPC services due to declining mining revenues following the fourth Bitcoin halving.

With expertise in managing large-scale data centers, Terawulf and other miners are transitioning to HPC and AI services while continuing to mine alternative proof-of-work assets.

Terawulf’s decision to sell its stake in Nautilus comes ahead of the expiration of a low-cost power agreement with Talen Energy in 2027, allowing the company to focus on cost-efficient operations and growing demand for AI and HPC services using zero-carbon energy.