TeraWulf is exploring acquisition opportunities to enhance profitability rather than merely “empire building.” This was stated by the mining company’s CSO, Kerri Langlais, in an interview with Cointelegraph.
Several experts have predicted a wave of consolidation in the industry following the halving of the block reward in April. In line with such deals, CleanSpark acquired its competitor GRIID for $155 million, and Riot Platforms attempted a hostile takeover of Bitfarms for $950 million.
“We will certainly consider opportunities for inorganic growth through mergers and acquisitions, [but] expanding just for the sake of growth or empire building without regard to profitability does not make sense,” Langlais explained.
According to her, the company does not consider deals solely to increase hash rate, but primarily focuses on profitability. The firm aims for “organic expansion” at existing facilities, Langlais added.
She noted that miners face competition for sites and energy resources, which affects profit margins. Langlais stated that TeraWulf mines bitcoins “profitably” at a spot price of the cryptocurrency of at least $40,000.
According to MacroMicro, the average production cost of one coin is $71,462. The price of digital gold at the time of writing is $57,148 (CoinGecko).
Earlier, CryptoQuant reported on miner capitulation, historically accompanied by a decline in hash rate and price.