Bitcoin Miner TeraWulf Increases Debt by $50 Million to Develop Data Center Infrastructure

TeraWulf Increases Debt by $50 Million to Develop Data Center Infrastructure

Bitcoin miner TeraWulf agreed to an additional $50 million in loans with current lender Wilmington Trust, in order to complete the data center infrastructure at its Lake Mariner facility in New York and Nautilus Cryptomine facility in Pennsylvania.

According to a filing with the U.S. Securities and Exchange Commission, the additional $50 million in borrowings bear interest at a rate of 11.5 percent and expire on December 1, 2024, compared to the previous $123.5 million in borrowings between the two. According to statistics examined by CoinDesk, TeraWulf is one of the publicly listed miners with the highest debt levels relative to its equity.

As the value of cryptocurrency has fallen by almost half this year, bitcoin miners have seen their profits decline. Some have turned to selling long-held bitcoin tokens to cover their operational expenses and debts.

TeraWulf’s chairman and CEO, Paul Prager, stated in a press release that the company wants to be “resilient and securely positioned,” as well as in a position to “take advantage of certain value-creating opportunities that might otherwise not be available during more healthy markets.”

For its Lake Mariner facility in upstate New York, TeraWulf has received the first delivery of 3,000 Bitmain Antminer S19 XP mining machines from Bitmain. By August, the miner anticipates that this batch will be operational, adding to the 3,300 machines now working there.

The company anticipates Lake Mariner to have 50 megawatts of capacity once construction is finished. The Pennsylvania Nautilus Cryptomine plant is still on schedule to begin operations in the third quarter.

According to the press release, TeraWulf has put down a $60 million deposit on mining rigs that it may use to purchase monthly shipments of equipment at the going rate.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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