The Miner's Search for Profit in a Falling Market

Since the market fell, the miner has been seeking to pick up profits.

TeraWulf, a Bitcoin miner, recently secured $50 million in loans from Wilmington Trust to help it finish the data center infrastructure at its Lake Mariner facility in New York and Nautilus Cryptomine facility in Pennsylvania.

  • The previous loan between the two was for $123.5 million, and the new $50 million in borrowings accrues interest at 11.5% and matures on Dec. 1, 2024, according to a filing with the U.S. Securities and Exchange Commission (SEC). TeraWulf is one of the most indebted publicly listed miners compared with its equity, data analyzed by CoinDesk has shown  
  • Bitcoin miners have seen their revenues decline as the price of crypto has fallen by about half this year, forcing some to sell their long-held bitcoin tokens to cover their debts and operating costs.
  • In a statement on Tuesday, Chairman and CEO Paul Prager said that TeraWulf wants to not only be "resilient and well-positioned," but also in a position to "capitalize on certain value-creating opportunities that may otherwise not be available during healthier markets."
  • TeraWulf's Lake Mariner facility in upstate New York has received its first batch of 3,000 Bitmain Antminer S19 XP mining rigs, according to the press release. The miner expects these miners to be running by August, as they join the 3,300 that are already operating at that mine.
  • After the completion of work at Lake Mariner, the company expects to have 50 megawatts of capacity there. The Nautilus Cryptomine facility in Pennsylvania is still on track to be up and running by the third quarter.
  • TeraWulf has paid $60 million for mining rigs, which it can use to purchase monthly batches of machines at their current prices.