Bitcoin Miner TeraWulf Reports 146% Increase in Revenue as It Ramps Up Operations
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Eliza Gkritsi is CoinDesk’s crypto mining reporter based in Asia.
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Bitcoin mining firm TeraWulf (WULF) reported 2022 fourth-quarter revenue of $9.6 million, up from $3.9 million in Q3 as the firm ramped up deployment of machines, according to its earnings published on Thursday.
Cost of operations in Q4 of $17.7 million was up 46% from $12.1 million in Q3, with higher depreciation and higher selling, general and administrative expenses noted by management.
The miner had a rough 2022, with cash running low at the end of the third quarter. It restructured its debt in February, as have other miners including Stronghold Digital Mining (SDIG) and Bitfarms (BITF). Other miners weren’t able to land restructuring deals and filed for Chapter 11 bankruptcy protection.
For full year 2022, WULF’s net loss attributable to common stockholders was $91.6 million.
In March, TeraWulf started bringing machines online in its Nautilus facility in Pennsylvania, which is fully powered by nuclear energy. At the site, the miner has secured power agreement for 2 cents per kilowatt hour (kWh) of electricity for five years, which will bring its energy costs down to 3.5 cents across its two facilities. The Nautilus mine is a joint venture, of which TeraWulf owns 25% after downsizing its stake from a 50-50 split with a subsidiary of power producer Talen Energy.
The miner expects to deploy 1.9 exahash/second (EH/s) of rigs at the Nautilus facility in the second quarter. In earlier statements it had specified May.
TeraWulf reiterated its target to reach 5.5 EH/s in Q2, which it previously said will comprise of 5 EH/s of self-mining and 0.5 EH/s of hosting. The miner has raised all capital necessary to achieve its 5.5 EH/s aim, CEO Paul Prager said during a Thursday earnings call.
The miner also said it is looking for consolidation opportunities to grow its mining capacity. The market is ripe with opportunity as many bitcoin miners are bending the knee in the crypto winter.
TeraWulf shares were up 2.2% in regular trade on Thursday and higher by another 2.5% in after-hours action.
Edited by Stephen Alpher.
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Eliza Gkritsi is CoinDesk’s crypto mining reporter based in Asia.
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Eliza Gkritsi is CoinDesk’s crypto mining reporter based in Asia.
