Bitcoin miner TeraWulf raises $17 million in Q3, but here’s the catch
- Riot Blockchain reported revenue of $46.3 million for Q3 2022
- Australian cryptomining group Iris Energy has received a default notice from Bitmain Technologies
Bitcoin mining company TeraWulf brought in $17 million in Q3 2022. But liquidity remained low at $4.5 million, at press time. TeraWulf published its financial results for Q3 (July-September 2022) yesterday (November 14) evening and revealed the details.
Of the $17 million, $9.5 million is part of the equity raised from existing investors and $7.5 million comes from the incremental dividend under the company’s term loan.
In addition, $138.5 million of principal under the term loan was outstanding at the end of this quarter.
Q3 revenue increased 179% to $3.9 million compared to $1.4 million in Q2. Cost of sales as a percentage of sales in Q3 increased to 134% compared to 43% in Q2; the increase can be attributed to relatively higher power costs and rapid expansion of mining operations.
TeraWulf self-mined 117 Bitcoin (BTC) coins and generated $3.9 million worth of revenue during this period. However, the power cost per Bitcoin increased from $15,365 in Q2 2022 to $20,732 in Q3 2022.
TeraWulf’s hashrate grew significantly during the period. It powered the New York mining facility by 50 MW, increasing its total online capacity to 60 MW. It hopes to increase the total capacity of 110 MW at the facility by the first quarter of 2023. The hash rate target for the period is approximately 5.8 EH/s.
Crypto Mining Companies Facing Solvency?
Other crypto mining firms are also not doing well amid a bearish market.
Texas-based cryptomining group Core Scientific issued a warning through its SEC filing last month that it could face insolvency as its financial situation has been adversely affected by the falling Bitcoin (BTC) price, rising power costs and litigation with Celsius .
Last month, London-based mining company Argo Blockchain announced via a press release that it had failed to raise $27 million worth of capital from a strategic investor and will continue to hunt. The company warned that if these efforts fail, it will be forced to close the business.
Riot Blockchain reported revenue of $46.3 million for Q3 2022; however, it was expected to earn an estimated $56.3 million during the period. 1,042 Bitcoin (BTC) were minted during the period.
On the other hand, Australian crypto mining group Iris Energy has received a default notice from Bitmain Technologies, a Beijing-based mining rig manufacturer, for not repaying a loan worth $103 million. The finding was disclosed in Iris Energy’s SEC filing.
Several major miners facing liquidity problems may file for bankruptcy as this bear market falls further as the FTX crash saga unfolds.
