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Bitcoin Miner Terawulf Raises $10M in New Capital to Pay Down Debt, Restructures Deal with Bitmain – Mining Bitcoin News
On Monday, December 12, 2022, Maryland-based bitcoin mining company Terawulf announced that the firm has raised $10 million in capital to pay down debt. The firm also said it restructured an agreement with Bitmain that will enable the company’s self-mining capacity to expand and fully utilize the 160 megawatts of Terawulf’s available mining capacity.
Terawulf Raises $10M in New Capital, Restructured Bitmain Deal Will Give Firm 8,200 ASIC Mining Rigs
Bitcoin miners have struggled this year as the price of bitcoin (BTC) has reduced the profits of every miner worldwide. On Dec. 12, publicly traded Terawulf Inc. (Nasdaq: WULF) disclosed that the company has successfully raised $10 million in capital to repay debt.
“The Company intends to use the aggregate net proceeds to repay the advance with Yorkville while simultaneously issuing a notice to Yorkville to terminate the accompanying SEPA entered into on June 2, 2022, and for other general corporate purposes,” Terawulf’s press release detailed.
In addition, Terawulf has managed to restructure a deal with Bitmain to add 8,200 application-specific integrated circuits (ASIC) bitcoin miners to the firm’s operations. “With the incremental delivery of 8,200 miners, the company increases its estimated self-mining target for the first quarter of 2023 to 44,450 owned miners deployed 5 [exahash per second] (EH/s) from its previous estimate of 36,250 owned miners (4.3 EH/s).”
Over the past six months, Terawulf’s stock has fallen 56.07% and over the past year, shares are down 93.89%. However, over the last five days, WULF has traded up 14.69% against the US dollar. Terawulf’s shares are no different to a majority of listed companies’ shares which have seen significant declines over the past 12 months.
Nazar Khan, co-founder and CEO of Terawulf, explained on Monday that despite the challenging environment facing bitcoin miners, his firm is well positioned. “There is no doubt that the mining business has been challenging over the past 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 cautiously grow our business while remaining focused on cost savings and profit margins,” Khan said.
What do you think about Terawulf raising $10 million in capital and restructuring the deal with Bitmain Technologies? Let us know what you think about this topic in the comments section below.
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