TeraWulf Repays $77.5M Debt Early, Plans Major Infrastructure Expansion

  • Sergey Maga
  • 10 July, 2024 01:48
TeraWulf Repays $77.5M Debt Early, Plans Major Infrastructure Expansion

TeraWulf Inc., a prominent Bitcoin miner, has repaid its $77.5 million term loan early, a move aimed at increasing the company’s flexibility to meet the rising demand for energy infrastructure. This infrastructure is crucial for powering high-performance computing (HPC) and artificial intelligence (AI) applications, according to Bloomberg.

TeraWulf, headquartered in Easton, Maryland, has been converting part of its Bitcoin mining infrastructure to support AI technology. The company plans to expand its operational capacity from 210 megawatts to 295 megawatts by the end of the year, with the potential to increase capacity by an additional 300 megawatts in the near term. This expansion includes a high-performance computing project at its Lake Mariner facility in New York, which will power the graphics processing units essential for generative AI technology.

TeraWulf’s strategic pivot to AI hosting has significantly boosted its stock performance. Shares of the company have more than doubled this year, in stark contrast to other miners like Marathon Digital and Riot Platforms, which have seen their shares decline amid concerns over profitability. The surge in TeraWulf’s stock follows a similar move by Core Scientific, which secured $3.5 billion in hosting contracts with AI firm CoreWeave.

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