TeraWulf’s Bitcoin Mining Revenue Soars 146% as Company Expands Operations

Bitcoin mining company TeraWulf (WULF) reported a 146% increase in revenue between Q3 and Q4 of 2022, reaching $9.6 million, as the firm accelerated the deployment of mining machines. Despite the revenue growth, operational costs rose by 46% to $17.7 million in the same period. Following the announcement, TeraWulf’s shares climbed 11% in after-hours trading.

The company faced challenges in 2022 due to the drop in Bitcoin’s (BTC) price, resulting in a net loss of $91.6 million for the year. TeraWulf, along with other competitors such as Stronghold Digital Mining (SDIG) and Bitfarms (BITF), restructured its debt in February. Some companies in the sector were unable to secure restructuring deals and filed for Chapter 11 bankruptcy protection.

In March, TeraWulf initiated operations at its Nautilus facility in Pennsylvania, powered entirely by nuclear energy. The company secured a power agreement for 2 cents per kilowatt-hour (kWh) of electricity for five years, reducing its overall energy costs to 3.5 cents across both facilities. TeraWulf owns a 25% stake in the Nautilus mine, a joint venture with Talen Energy subsidiary.

The company aims to deploy 1.9 exahash/second (EH/s) of rigs at the Nautilus facility in Q2 and reaffirmed its goal of achieving 5.5 EH/s of computing power by the end of the second quarter. CEO Paul Prager confirmed that all necessary capital has been raised to reach the 5.5 EH/s target, which includes 5 EH/s for self-mining and 0.5 EH/s for hosting operations.

TeraWulf is also actively exploring consolidation opportunities to expand its mining capacity, as the market presents numerous possibilities due to the struggles faced by many Bitcoin miners.