TeraWulf was a first mover in powering Bitcoin mining through nuclear energy. Now, they have sold their stake in one of their flagship Bitcoin mining operations to Talen Energy.
What’s happening:
- TeraWulf (NASDAQ: WULF) has sold their minority interest in the Nautilus Bitcoin mining property located in Pennsylvania to Talen Energy (NASDAQ: TLN) for $85M USD in cash
Why it matters:
- TeraWulf is planning to use the new capital to accelerate their expansion into high performance computing and hosting GPUs, a trend which has been ramping up with other publicly traded Bitcoin miners recently including Hut 8 (NASDAQ: HUT)
By the numbers:
- TeraWulf earned a 3.4x return on investment from their interest in the Nautilus facility
- After purchasing TeraWulf’s 25% equity ownership in Nautilus, Talen Energy now owns 100% of the project
Going deeper:
- Talen Energy owns and operates the Susquehanna nuclear power plant which provides the electricity for the Nautilus Bitcoin mining facility and can now restructure the power purchase agreement after taking full control of the project
- Talen Energy also previously made waves when they sold one of their nuclear energy powered data centre campuses to Amazon (NASDAQ: AMZN) in a deal that is aiming to lower the carbon emissions caused by Amazon’s cloud computing business
The intrigue:
- Billionaire and legendary Wall Street hedge fund manager Stanley Druckenmiller previously acquired an equity stake in TeraWulf
