TeraWulf Offloads 25% Stake in Nautilus Cryptomine to Talen Energy for $92 Million

Bitcoin miner TeraWulf has ramped up efforts to expand its BTC mining and AI data computing operations.

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Bitcoin miner TeraWulf is expanding its BTC mining and AI data computing operations. According to a recent report, the firm sold its share in the Nautilus Cryptomine to Talen Energy for $92 million.

The proceeds will be used to fund AI data centers and the purchase of more efficient Bitcoin miners.

TeraWulf Sells Stake for $92 Million

TeraWulf owned a 25% stake in the Nautilus Cryptomine, a 200-megawatt BTC mining facility. However, the company recently sold the stake to Talen Energy for $92 million, with $85 million in cash, reports indicate.

The deal also includes 30,000 miners and other equipment valued at $7 million.

“This sale allows TeraWulf to achieve a 3.4x return on investment in Nautilus,” said TeraWulf CEO Paul Prager.

With this transaction, Talen Energy now fully owns the Nautilus site, while TeraWulf will focus on expanding its operations in AI and high-performance data centers.

The decision to sell the stake allowed TeraWulf to monetize its interest before the current power contract expires. This move will prepare the company for lower future power prices and greater cost efficiency.

Proceeds to be Reinvested for Growth

According to the company’s press release, TeraWulf intends to reinvest the majority of the proceeds in Bitcoin mining and AI.

One key focus will be the construction of a 20-megawatt facility at their Lake Mariner site in New York. This new facility will house AI and high-performance computing data centers, expanding TeraWulf's presence in the tech space.

“The sale of TeraWulf’s minority interest in Nautilus will streamline its consolidated financial statements, enhancing transparency and comparability for shareholders,” the press statement reads.

Additionally, TeraWulf will allocate funds to purchase more Bitcoin miners at a discount.

The company’s favorable miner purchase agreement allows it to buy equipment at a lower price than the current market rate, significantly reducing overall mining costs.

TeraWulf is also working to complete its new “MB-5” Bitcoin mining facility, which, upon completion, could increase the company’s operating hashrate to 13 exahashes per second (EH/s) by early 2025.

Market ResponseInvestors reacted positively to TeraWulf's move, as the stock market responded well to the announcement.

According to data from Google Finance, TeraWulf's stock price increased by 8% following the news.

The data shows that the stock closed the market yesterday at $4.36 but traded at $4.71.

Meanwhile, TeraWulf is not stopping here. The company is looking to grow further, but smartly.

Back in July, the company stated that it is considering mergers and acquisitions to expand its market presence.

“We will certainly consider inorganic growth opportunities through M&A [but] expanding merely for growth’s sake, or ’empire building,’ without considering profitability makes no sense,” said Kerri Langlais, Chief Strategic Officer.

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