Bitcoin Miner Terawulf Raises $10M in Fresh Capital to Pay Down Debt, Restructures Deal With Bitmain
On Monday, Dec. 12, 2022, the Maryland-based bitcoin mining company Terawulf announced that the firm has raised $10 million in capital to pay down debts. The firm also said that it restructured a deal with Bitmain which will enable the company’s self-mining capacity to expand and fully leverage the 160 megawatts of Terawulf’s available mining capacity.
Terawulf Raises $10 Million in New Capital, Restructured Bitmain Deal Will Give the Firm 8,200 ASIC Mining Rigs
Bitcoin miners have been struggling this year as the price of bitcoin (BTC) has reduced profits for every mining participant worldwide. On Dec. 12, the publicly-listed Terawulf Inc., (Nasdaq: WULF) revealed the company has managed to raise $10 million in capital to repay debts.
“The company intends to use the aggregate net proceeds to repay the advance with Yorkville and simultaneously issue a notice to Yorkville to terminate the accompanying SEPA entered into on June 2, 2022, and for other general corporate purposes,” Terawulf’s press statement details.
Additionally, Terawulf has managed to restructure a deal with Bitmain in order to add 8,200 application-specific integrated circuit (ASIC) bitcoin mining machines to the firm’s operations. “With the incremental delivery of 8,200 miners, the company is increasing its estimated Q1 2023 self-mining target to 44,450 owned miners deployed 5 [exahash per second] (EH/s) from its prior estimate of 36,250 owned miners (4.3 EH/s).”
Over the last six months, Terawulf’s shares have slid 56.07% and during the past year, shares are down 93.89%. During the last five days, however, WULF has increased 14.69% against the U.S. dollar. Terawulf’s stock is no different than a majority of the publicly-listed companies’ stocks that have seen significant declines during the last 12 months.
Nazar Khan, the co-founder and chief operating officer of Terawulf, explained on Monday that despite the challenging environment bitcoin miners face, his firm is well-positioned. “There is no doubt the mining business has been challenging over the last 12 months; however, we are strategically positioned as one of – if not the – lowest-cost producers of bitcoin and we will continue to strategically and prudently expand our operations while remaining focused on cost savings and profit margins,” Khan said.
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