American mining company TeraWulf raised $10 million through a $6.7 million offering of common shares and a $3.4 million issue of convertible notes.
Press Release here: https://t.co/b6RSOmdmMR
— TeraWulf (@TeraWulfInc) December 12, 2022
The company said the funds would be used to repay part of its debt and for “other corporate purposes”.
TeraWulf also reached an agreement with Chinese miner Bitmain to restructure the equipment-purchase contract. As a result, the company will receive, instead of the December-delivered batch of 3,000 Antminer S19 XP units, around 14,000 Antminer S19j Pro units with deliveries in the first quarter of 2023.
The company said the deal did not require any additional costs beyond drawing on the remaining deposit, the size of which was not disclosed.
Following the revised agreements, the fleet will grow to 44,450 devices with a total hash rate of 5 EH/s.
This will allow TeraWulf to fully utilise the 110 MW of mining capacity at the Lake Mariner facility and 50 MW at the Nautilus Cryptomine data centre.
Both facilities are set to be fully commissioned in early 2023. Lake Mariner currently operates equipment with a capacity of 60 MW.
“With the latest version of the agreement, the company’s standalone mining hash rate will grow by 23%, and the total cost of production will be around $6,300 per coin,” said the co-founder and COO Nazar Khan of TeraWulf.
According to him, the company has access to electricity at about $0.035 per kWh, roughly 30% below the industry average. Coupled with available capacity of more than 160 MW across two sites, this will allow TeraWulf to remain one of the few Bitcoin miners that can operate profitably and sustainably in a low crypto-price environment, Khan stressed.
Earlier in October, TeraWulf attracted $17 million in equity and debt financing.
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