TeraWulf Adds $50M in Debt to Build Data Center Infrastructure

The miner aims to seize opportunities created by the market slump.

AccessTimeIconJul 5, 2022 at 3:29 p.m. UTC
Updated May 9, 2023 at 3:50 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Bitcoin miner TeraWulf agreed to an additional $50 million in loans as it looks to complete the data center infrastructure at its Lake Mariner facility in New York and Nautilus Cryptomine facility in Pennsylvania.

  • This adds to a previous loan of $123.5 million, and the new $50 million in borrowings accrues interest at 11.5% and matures on Dec. 1, 2024, according to a filing with the U.S. Securities and Exchange Commission. TeraWulf is one of the most indebted publicly listed miners compared with its equity, data analyzed by CoinDesk has shown.
  • Bitcoin miners have seen their revenues dwindle as the price of crypto has lost about half of its value this year, with some resorting to selling long-held bitcoin tokens to pay their debts and operating costs.
  • TeraWulf wants to not only be "resilient and securely positioned," but also in position to "take advantage of certain value-creating opportunities that might otherwise not be available during more healthy markets," Chairman and CEO Paul Prager said in a Tuesday press release.
  • Maryland-based TeraWulf has received its first batch of 3,000 Bitmain Antminer S19 XP mining rigs for its Lake Mariner facility in upstate New York, according to the press release. The miner expects this batch to be running by August, adding to the 3,300 that are now operating at that mine.
  • Upon completion of work at Lake Mariner, the company expects to have 50 megawatts of capacity there. The Nautilus Cryptomine facility in Pennsylvania remains on track to be operational in the third quarter.
  • TeraWulf has put down $60 million in deposits for mining rigs, which it can use to buy monthly batches of machines at the then-current prices, the press release added.
  • Digital Assets Are 'More Sensitive' to Interest Rate Hikes: Expert
    13:37
    Digital Assets Are 'More Sensitive' to Interest Rate Hikes: Expert
  • Could Solana's SOL Hit $200 by Month End?
    00:43
    Could Solana's SOL Hit $200 by Month End?
  • Genesis Set to Return $3B to Creditors; Craig Wright Lied to UK Court 'Extensively': Judge
    01:58
    Genesis Set to Return $3B to Creditors; Craig Wright Lied to UK Court 'Extensively': Judge
  • Metaverse Lets Users 'Defy Gravity': VBG Founder
    00:56
    Metaverse Lets Users 'Defy Gravity': VBG Founder
  • Updated on 7/13 at 13:24 UTC to remove Wilmington Trust, which was incorrectly identified as the lender.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.