The mining firm has a liquidity position of $4.5 million and outstanding principal of $138.5 millionRead MoreCoinDesk
Bitcoin mining company TeraWulf (WULF) raised $17 million in capital in the third quarter, but its liquidity remains at $4.5 million, according to a statement on its third quarter earnings released after the market close on Monday.
The $17 million came from $9.5 million in equity from existing investors and $7.5 million of incremental proceeds under a term loan. The Monday statement said that $138.5 million of principal under the term loan was outstanding at the end of the quarter.
Cash flow has proven to be a key determinant of miners’ ability to navigate the bear market, with some major miners facing liquidity crises that could even lead them to bankruptcy.
TeraWulf’s costs of revenue increased dramatically in the quarter as energy prices in New York State, where it mainly operates, soared while it increased its energy demand with new operations. The miner paid 134% in costs per dollar of revenue, compared to 43% in Q2. The miner is trying to bring costs down for 2023, the statement said.
In the same quarter, TeraWulf significantly increased its hashrate, or computing power, and energy capacity that could be used for deploying mining machines. About 50 megawatts (MW) of power were brought online at its mining facility in Lake Mariner in upstate New York. The company had 11,000 miners operating at the end of the quarter, and another 9,000 are scheduled to be plugged into the 50 MW in Lake Mariner. As a result of the expansion, WULF mined 117 bitcoin in the third quarter, compared to 29 in the second quarter.
WULF share prices were down 0.8% in after-hours trading on the Nasdaq on Monday.
TeraWulf also said it “right-sized” its investment in a joint venture with a subsidiary of Talen Energy to 25%. The venture relates to a 200 MW mine in Pennsylvania, dubbed Nautilus.
The miners’ computing power goal for the first quarter of 2023 remained unchanged at 5.8 exahash/second (EH/s).
TeraWulf is one of the most indebted publicly listed miners compared with its equity, data analyzed by CoinDesk in June showed.
Read more about
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Memecoins have been one of the best-performing crypto sectors in the past year, buoyed by…
Bitcoin price started a fresh increase above the $62,000 zone. BTC is gaining pace and…
The Bitcoin price has somewhat slowed down this weekend, failing to capitalize on its resurgent…
Spot Bitcoin ETFs launched the fourth quarter of 2024 on a turbulent note ending the…
According to data from CoinMarketCap, Bitcoin currently hovers near the $62,000 price mark with no…
Following a major price decline in Bitcoin (BTC), market sentiment dropped back to strong levels…