TeraWulf, a Bitcoin miner, sold a 25% stake in its Nautilus Cryptomine operation, located near the Susquehanna nuclear power plant in Pennsylvania, for $92 million. The buyer was a subsidiary of Talen Energy Corporation. The proceeds will be directed towards the development of hosting services for high-performance computing and AI.

TeraWulf received 3.4 times more than its initial investment. The deal included 30,000 Bitcoin miners and associated equipment. These funds will be reinvested into the Lake Mariner project in New York, where a 20 MW system for AI and Bitcoin mining is being built.

Recently, the Lake Mariner facility completed the development of a 2 MW high-performance system for next-generation GPUs. The company is also constructing a liquid-cooling system, with commissioning scheduled for Q1 2025.

Strategic Diversification

The sale of the stake in the Nautilus Cryptomine project and the development of the Lake Mariner project highlight TeraWulf’s strategy of diversifying its business towards artificial intelligence and data centers. This is supported by a Bernstein report, which identifies miners as attractive partners for AI companies due to their access to energy and infrastructure capabilities.

According to the Bitcoin Policy Institute, AI could generate 17-25 times more revenue per kilowatt-hour compared to Bitcoin mining, with the revenue per kWh in Bitcoin mining standing at $0.17-0.2, versus $3-5 for cryptocurrency mining.