Terawulf Sells Stakes in Bitcoin Mine for AI Expansion

Bitcoin mining firm Terawulf (NASDAQ: WULF) has sold its 25% stake in the nuclear-powered Nautilus bitcoin mine in Pennsylvania to its joint venture (JV) partner, Talen Energy, for $92 million.

Terawulf announced on Thursday that it completed the transaction “ahead of the expiration of the $0.02/kWh power contract and ground lease in June 2027.” The firm plans to reinvest the proceeds into building a 20-megawatt facility, named CB-1, at its flagship Lake Mariner site in New York, dedicated to hosting high-performance computing (HPC) and AI data centers.

The $92 million consideration comprises $85 million in cash and 30,000 bitcoin miners contributed by Talen, valued at approximately $7 million. Terawulf stated that with the transaction proceeds, the construction of CB-1 remains “on track to be operational by Q1 2025.” This move is part of Terawulf’s strategy to expand its power capacity to support HPC/AI hosting alongside its proprietary bitcoin mining operations.

The Nautilus joint venture contributed about 20% of Terawulf’s total bitcoin production. In August, the company mined 147 BTC from its fully owned Lake Mariner site, 37 BTC from the Nautilus JV, and 16 BTC equivalent from demand response activities. This equated to around 1.65 EH/s of realized hashrate at the Nautilus site.

The company did not specify when or how it plans to relocate the hashrate from the JV site but indicated it is continuing the construction of the “MB-5” mining site in New York and reiterated its operational target of reaching 13 EH/s by Q1 2025.

As of August 30, Terawulf possessed about 10 EH/s of installed hashrate, including those from Nautilus, and reported a weighted average power cost of about $0.044/kWh.