TeraWulf announced that the Company is deploying solely BITMAIN Technologies manufactured mining equipment to fill its 50 MW of capacity at the nuclear-powered Nautilus bitcoin mining facility. "I am very pleased to note that the roughly 8,000 BITMAIN miners energized thus far at Nautilus have been stable and operating efficiently." The Nautilus facility represents the first behind-the-meter bitcoin mining facility of its kind, directly sourcing reliable, carbon-free, 24x7 baseload power from the 2.5 GW Susquehanna nuclear generation station in Pennsylvania. TeraWulf recently commenced mining operations at Nautilus and expects its full share in phase one of the facility - 50 MW and 1.9 EH/s - to be online by May. The Company has the option to add an additional 50 MW of bitcoin mining capacity at the Nautilus facility, for a total of 100 MW, which TeraWulf plans to deploy in future phases. TeraWulf purposefully paired BITMAIN's industry leading, latest generation bitcoin miners with Nautilus's uninterrupted, fixed 2-cent nuclear power to deliver maximum margins all hours of the year. The Company is deploying a combination of BITMAIN miners including their S19 XP Pro miners, which have a processing power of 140 TH/s and energy consumption of 3 kW, for an efficiency rate of 21.5 J/TH, as well as S19j Pro and S19 Pro miners, which have a processing power of 100 TH/s and energy consumption of approximately 3 kW, for an efficiency rate of 30 J/TH. "BITMAIN's carbon neutral strategy and best-in-class mining equipment make BITMAIN an ideal partner to scale our zero-carbon digital infrastructure at Nautilus," said Paul Prager, Chairman and CEO of TeraWulf. "I am very pleased to note that the roughly 8,000 BITMAIN miners energized thus far at Nautilus have been stable and operating efficiently."
TeraWulf Inc. (WULF), which owns and operates vertically integrated, domestic Bitcoin mining facilities powered by more than 91% zero-carbon energy, confirmed that it does not hold any cash or maintain any accounts at Silicon Valley Bank (SIVB) or Silvergate Capital (SI), and considers its exposure to any liquidity concerns at Signature Bank to be immaterial. TeraWulf currently holds approximately $250,000 in cash deposits at Signature Bank, which is the FDIC-insured limit, with the balance of the company's bank deposits held at other financial institutions.
TeraWulf provided an unaudited monthly production and operations update for February. The company self-mined 143 bitcoin in February with an average production rate of 5 bitcoin per day. Cost of power in February averaged $7.9k per bitcoin produced, or approximately $0.038/kWh, which is in line with the company's targeted power cost of $0.035/kWh across its two mining sites.
TeraWulf announced that the company has now energized roughly half of its 50-MW stake in the Nautilus Cryptomine facility, a joint venture with Cumulus Coin. The Nautilus facility represents the first behind-the-meter bitcoin mining facility of its kind, directly sourcing reliable, carbon free, and 24x7 baseload power from the 2.5 GW Susquehanna nuclear generation station in Pennsylvania. Currently, the company has brought nearly 8,000 of its miners online, representing a hash rate capacity of approximately 1.0 EH/s. Energization of the company's remaining miners will continue over the coming weeks, with TeraWulf's full share in phase one of the facility - 50 MW and 1.9 EH/s - expected online by May. TeraWulf has the option to add an additional 50 MW of bitcoin mining capacity at the Nautilus facility, which the company plans to deploy in future phases. In addition to ramping its 50-MW stake in the Nautilus facility, TeraWulf is currently expanding bitcoin mining operations at its wholly owned Lake Mariner facility in New York with the addition of Building 2, which will increase the facility's operational capacity from 60 MW to 110 MW. Combined, the company expects to have a total operational capacity of 50,000 miners in early Q2, representing approximately 160 MW of power demand.
Massachusetts Senator Elizabeth Warren is putting together an anti-crypto army, with some conservatives getting on the cause, reports Politico. Sen. Roger Marshall, a Kansas Republican, co-sponsored the progressive Massachusetts Democrat's legislation, added the story. "Warren is zeroing in on national security concerns as her focus for potential crypto legislation, even as she raises red flags about a host of issues in the space, from consumer protections to environmental impact," added the Politico story. Publicly traded companies in the space include Bit Digital (BTBT), Coinbase (COIN), Core Scientific (CORZ), Greenidge Generation (GREE), Marathon Digital (MARA), MicroStrategy (MSTR), Riot Blockchain (RIOT), Stronghold Digital Mining (SDIG) ,TeraWulf (WULF) and Nvidia (NVDA). Reference Link
B. Riley analyst Lucas Pipes lowered the firm's price target on TeraWulf to $2 from $5 and keeps a Buy rating on the shares. The analyst updated estimates following the company's equity raise to complete the buildout of its Lake Mariner and Nautilus facilities. While TeraWulf's ramp comes at a later stage than its peers, the company's target power cost of $35/MWh would put it in the first quartile of the North American cost curve, the analyst tells investors in a research note.
The Securities and Exchange Commission charged Payward Ventures, and Payward Trading, both commonly known as Kraken, with failing to register the offer and sale of their crypto asset staking-as-a-service program, whereby investors transfer crypto assets to Kraken for staking in exchange for advertised annual investment returns of as much as 21%.To settle the SEC's charges, the two Kraken entities agreed to immediately cease offering or selling securities through crypto asset staking services or staking programs and pay $30M in disgorgement, prejudgment interest, and civil penalties. According to the SEC's complaint, since 2019, Kraken has offered and sold its crypto asset "staking services" to the general public, whereby Kraken pools certain crypto assets transferred by investors and stakes them on behalf of those investors. Staking is a process in which investors lock up - or "stake" - their crypto tokens with a blockchain validator with the goal of being rewarded with new tokens when their staked crypto tokens become part of the process for validating data for the blockchain. When investors provide tokens to staking-as-a-service providers, they lose control of those tokens and take on risks associated with those platforms, with very little protection. The complaint alleges that Kraken touts that its staking investment program offers an easy-to-use platform and benefits that derive from Kraken's efforts on behalf of investors, including Kraken's strategies to obtain regular investment returns and payouts "Whether it's through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors' tokens, need to provide the proper disclosures and safeguards required by our securities laws," said SEC Chair Gary Gensler. "Today's action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection." Publicly traded companies in the space include Bit Digital (BTBT), Coinbase (COIN), Core Scientific (CORZ), Greenidge Generation (GREE), Marathon Digital (MARA), MicroStrategy (MSTR), Riot Blockchain (RIOT), Stronghold Digital Mining (SDIG) and TeraWulf (WULF). Reference Link
The company reports its January metrics, stating: "Self-mined 157 Bitcoin in January 2023, an increase of more than 25% from December 2022. Deployed fleet of 18,000 miners that consistently achieved hash rate capacity of +2.0 EH/s with self-owned miners delivering nearly 100% operational uptime. Power cost decreased in January 2023 to approximately $0.052/kWh, compared to approximately $0.060/kWh in December 2022 following the return to more normalized weather. The Company continues to target a blended average cost of power of approximately $0.035/kWh, comprised of approximately $0.045/kWh at the Lake Mariner facility and a fixed, five-year contracted rate of $0.02/kWh at the Nautilus Cryptomine facility."
TeraWulf announced that the company's CEO Paul Prager, has issued an open letter to shareholders. The letter read in part, " It has been four weeks since I shared my reflections on TeraWulf's achievements in 2022 and stated goals for 2023. And in that short period, our team has accomplished key milestones that we believe will be foundational in achieving our goal of being the preeminent miner producing bitcoin from zero-carbon energy resources at the lowest marginal cost in the sector. We believe these strategic steps will position TeraWulf for long-term, sustainable growth. Our priority continues to be reducing costs and deploying those resources towards the Company's path to positive cash flow from operations in 2023. In doing so, we believe that we will be able to generate increasing cash flow throughout the year, which will give us further financial leverage to scale our mining operations...After several weeks of constructive dialogue with our lenders, we have reached an agreement on modifying the terms of our debt to eliminate near-term amortization and thereby optimize TeraWulf's financial flexibility through market cycles. Let me be clear - we have a deal that should enable the Company to pay down principal when we have available free cash flow, instead of adhering to a mandatory payment schedule. This is HUGE...In the matter of just a few weeks, we raised what we plan to be the final funding needed to bridge the Company to self-sustaining operations, only a few months away. We have said all along the amount of monies required to achieve free cash flow positive operations, and we have now reached that important milestone...As part of our recent and likely final capital raise, my co-founder and COO, Nazar Khan, and I purchased an additional $2.5 million of equity at the market price. That's right, we bought at market while this transformational equity raise came at a modest discount to the market. Why? Because our confidence in TeraWulf is stronger than ever as we build upon, and begin to realize, our distinguishing advantages.I also want to address the confusion out there regarding the perceived sale of stock. For the avoidance of doubt, I did not sell 12 million shares. I exchanged shares for warrants to free up available authorized common stock ahead of our shareholder meeting later this month to increase the Company's authorized common shares. These warrants will convert back to common stock without any price differential...Every move from this point forward is about advancing our mission and pushing the boundaries of what is possible - for our business and our shareholders. We will remain laser-focused on scaling mining operations at our existing sites while opportunistically pursuing strategic opportunities in a financially responsible manner."