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TeraWulf boosts bitcoin mining capacity by 76%

EditorNatashya Angelica
Published 07/03/2024, 01:19 PM
WULF
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EASTON, Md. - TeraWulf Inc. (NASDAQ:WULF), a U.S.-based bitcoin mining company, has reported significant growth in its self-mining capacity and operational updates for June 2024. According to the company's press release, TeraWulf's installed and operational self-mining capacity has reached approximately 8.8 exahashes per second (EH/s), marking a 76% year-over-year increase.

In June, TeraWulf mined 177 bitcoins, maintaining an average production rate of about 5.9 bitcoins per day. This performance is consistent with May's production levels. The company's power costs averaged $32,373 per bitcoin mined, excluding proceeds from demand response activities, which are expected to lower power costs further.

TeraWulf's Lake Mariner facility in New York played a major role in this growth, with the substantial completion of Building 4 in June. The new building is set to house around 10,000 of Bitmain's latest generation S21 and S21 Pro miners. Once operational, Building 4 is projected to push the company's total operating capacity over 10.0 EH/s in July.

The company is also progressing with its digital infrastructure projects at Lake Mariner, including the construction of a 2 MW AI/High-Performance Computing (HPC) digital infrastructure pilot, and a 20 MW co-location pilot facility with a targeted completion by the end of 2024.

TeraWulf's Nautilus facility, a joint venture in Pennsylvania, faced temporary performance reductions due to increased temperatures. However, the team has made modifications to the filter design to improve airflow and mitigate temperature-related issues.

The company emphasizes its commitment to environmentally clean bitcoin mining, highlighting that its operations are powered by 95% zero-carbon energy, with the aim of achieving 100% zero-carbon energy usage.

This information is based on a press release statement from TeraWulf Inc., which provided these updates as part of their monthly production and operations reporting. The company's forward-looking statements indicate a focus on expanding capacity and improving infrastructure to support the growth of its bitcoin mining operations.

In other recent news, Terawulf Inc (NASDAQ:WULF). has seen significant developments in its financial performance and growth prospects. The company's first quarter of 2024 saw GAAP revenues reach $42.4 million, an 82% increase from the prior quarter, and a non-GAAP adjusted EBITDA of $32 million, up 95% from the previous quarter.

Terawulf's management has expressed confidence in its ability to secure a deal that could contribute to revenue and EBITDA by the second half of 2025.

Roth/MKM initiated coverage on Terawulf with a Buy rating, highlighting the company's potential within the digital infrastructure energy demand sector. Similarly, B.Riley and Cantor Fitzgerald have both raised their price targets for the company, citing its potential in the high-performance computing (HPC) sector and its strategic Lake Mariner site.

Terawulf's focus on building a scalable and efficient Bitcoin mining business, along with its potential foray into high-performance computing infrastructure, is central to these firms' optimistic assessments of the company's investment potential.

Cantor Fitzgerald anticipates that within four years, Terawulf could achieve 570 MW of AI/High-Performance Computing (HPC) capacity, potentially generating $500 million in earnings before tax (EBT).

These recent developments underscore Terawulf's ambitious expansion plans and its potential for profitability amidst industry challenges.

InvestingPro Insights

TeraWulf Inc. (NASDAQ:WULF), while showcasing robust growth in its bitcoin mining capacity, also presents an interesting investment profile according to recent data and analysis from InvestingPro. With a marked increase in operational capacity and a strategic focus on environmentally clean energy, the company's financial metrics and market performance offer additional insights for investors.

The company's market capitalization currently stands at a substantial $1.75 billion, reflecting investor confidence and its scale within the industry. Despite not being profitable over the last twelve months, TeraWulf has demonstrated an impressive revenue growth of 280.01% during the same period. This growth trajectory is echoed in the company's quarterly revenue surge of 267.93%, underscoring the company's expanding market presence.

Investors should note that TeraWulf's stock has experienced significant returns, with a 1-year price total return of 150.0%, and a short-term surge with a 1-week price total return of 10.02%. This performance indicates a strong investor sentiment and a positive response to the company's recent operational achievements and future prospects. Still, with a high price-to-book ratio of 6.65, the stock trades at a premium, which might warrant caution for value-focused investors.

For those interested in further analysis and additional InvestingPro Tips for TeraWulf, there are currently 17 more tips available. These include expectations of sales growth in the current year and insights into the company's debt levels and stock price volatility. To explore these insights in depth, investors can visit InvestingPro at: https://www.investing.com/pro/WULF and take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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