TeraWulf is a bitcoin mining infrastructure firm that is expediting the transition to a zero-carbon future by focusing on environmentally friendly mining activities. They just announced the launch of Nautilus Cryptomine, the United States’ first nuclear-powered Bitcoin mining plant. According to reports, the facility receives carbon-free and 24-hour baseload power from Pennsylvania’s 2.5 GW Susquehanna nuclear power plant.
According to a press statement issued on Monday, the company purchased approximately 8,000 mining machines online, reflecting a hash rate of nearly 1.0 exahash per second (EH/s). Additional 8,000 mining rigs are planned to be activated in the next weeks, increasing the capacity of the Nautilus plant to 50 MW and 1.9 EH/s by May.
TeraWulf’s energy expenses will be greatly reduced by Nautilus, which has acquired a power agreement for 2 cents per kilowatt hour (kWh) of power for five years, bringing its average energy cost down to around 4 cents/kWh across its two locations. This is significantly lower than the US industrial average of 9 cents/kWh recorded by the Energy Information Administration in December 2022, as well as the variable cost TeraWulf pays at its New York facility, which averages 5 cents/kWh.
The Nautilus mine is the first behind-the-meter bitcoin mining plant of its kind, directly obtaining stable, carbon-free, and 24×7 baseload power from the 2.5GW Susquehanna nuclear production plant in Pennsylvania according to TeraWulf. TeraWulf holds a 25% stake in the joint venture with Texas energy company Talen Energy.
TeraWulf has expanded the number of machines used in its mining operations since the beginning of the year. Yet another Bitcoin mining company, Bitmain sent 6,100 miners to the US-based miner, bringing the total to 18,000. In total, 15,900 machines are expected by the conclusion of the first quarter. In addition to increasing its 50-MW ownership in the newest nuclear-powered Bitcoin miner, the business is expanding bitcoin mining activities at its wholly-owned Lake Mariner plant in New York with the construction of Building 2. The facility’s operational capacity will be increased from 60 MW to 110 MW as a result of this.
The prolonged crypto winter resulted in several bankruptcies and fire sales. TeraWulf suffered as well, resorting to cost-cutting measures in November when Bitcoin’s price plummeted and energy expenses skyrocketed. Last month, the company restructured its debt commitments in order to avoid filing for bankruptcy. In December, they obtained $10 million in additional financing to repay part of their debt. However, both the cryptocurrency and energy markets have improved slightly in early 2023, and the mining business is beginning to revive.
