Bitcoin mining company Terawulf Inc. has completed the sale of its 25% stake in the Nautilus Cryptomine venture for approximately $92 million. The company said this week that it intends to use the proceeds to expand high-performance computing (HPC) and artificial intelligence (AI) infrastructure at its Lake Mariner facility.
Crypto Mining Firm Terawulf Sells $92 Million Stake in Bitcoin Mine to Fund AI Expansion
The sale, which includes $85 million in cash and $7 million worth of mining equipment, represents a 3.4x return on Terawulf’s initial investment, according to an announcement shared with Bitcoin.com News. The transaction is seen as part of a strategic shift to focus on more efficient and scalable AI and HPC operations. Terawulf aims to reinvest the capital into building a new 20-megawatt colocation building (CB-1), with operations expected to begin in early 2025.
“This transaction further focuses Terawulf’s focus and investments on where we have the highest performance, the greatest growth potential and the best opportunity to deliver increased value to shareholders,” commented Paul Prager, CEO of Terawulf.
In addition to expanding its focus on AI, Terawulf said it remains committed to maintaining its bitcoin mining capabilities. The company plans to upgrade the efficiency of its fleet at the Lake Mariner facility, aiming to reach 13 exahashes per second (EH/s) by the first quarter of 2025. Additionally, Terawulf revealed that it is working to complete another co-location building, CB-2, which will have a capacity of 50 megawatts (MW) and is expected to be operational by mid-2025.
Many bitcoin miners have been moving into HPC and AI services even before the fourth Bitcoin halving reduced their block rewards. Since the halving, mining revenue has dropped significantly, prompting miners to accelerate their transition to AI services while also mining other proof-of-work assets such as kaspa and bitcoin fractals. With their expertise in operating large-scale data centers, providing HPC and AI hosting services became a natural progression for them.
Terawulf’s decision to monetize its Nautilus stake comes ahead of the expiration of its low-cost power agreement with Talen Energy in 2027. By divesting now, Terawulf further details that it intends to leverage better cost efficiencies at its New York facility, while ensuring it can meet growing demand for AI and HPC services using primarily carbon-free energy sources.
What do you think about Terawulf’s decision to monetize Nautilus shares and expand its AI and HPC services? Please share your thoughts and opinions on the subject in the comments section below.
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