One of Wall Street’s most legendary investors has taken a position in a Bitcoin mining company that’s powered by nuclear energy.
What’s happening:
- Wall Street legend Stanley Druckenmiller has purchased 2M shares of Bitcoin mining company TeraWulf (NASDAQ: WULF) through his family office Duquesne according to new 13-F documents filed with the United States Securities and Exchange Commission
Why it matters:
- There has been a growing concern that Bitcoin miners would struggle with profitability following the most recent Bitcoin halving due to lower rewards, which led to a temporary widespread downturn in the share price of many of the largest Bitcoin mining companies listed on major stock exchanges globally
- Stanley Druckenmiller’s investment into TeraWulf represents meaningful validation that institutional capital allocators still have conviction in the future of Bitcoin miners and their ability to operate profitably post halving
By the numbers:
- Stanley Druckenmiller’s family office Duquesne currently owns 2.09M shares of TeraWulf at an average cost of $4.45 USD per share
Going deeper:
- TeraWulf is one of the only Bitcoin mining companies that powers its operations through nuclear energy, with their Pennsylvania based Nautilus facility being located near the nuclear power plant owned by Talen Energy Corporation (NASDAQ: TLN)
- Talen Energy Corporation notably sold a data centre campus to Amazon (NASDAQ: AMZN) that also receives all of its electricity from zero carbon nuclear power
- Billionaire Steve Cohen’s hedge fund Point72 Asset Management also recently purchased a stake in TeraWulf
The intrigue:
- Using renewable energy to power Bitcoin mining facilities is a trend that has been rapidly growing, with Gryphon Digital Mining (NASDAQ: GRYP) becoming one of the first publicly traded Bitcoin mining companies to become certified as carbon neutral in all of their operations by non-profit Energy Web
