Key Takeaways:
- AI Pivot: TeraWulf is leasing 70+ MW of its Lake Mariner facility to Core42, expanding into AI-driven cloud hosting by 2025.
- Bitcoin Mining Struggles: Rising costs, now $55,950 per BTC, are squeezing miners, prompting diversification into alternative revenue streams like AI.
- Market Performance: Despite a Q3 loss and a recent stock dip, TeraWulf’s shares rose 152.6% in 2024, buoyed by Bitcoin’s price surge.
Bitcoin miner TeraWulf is diversifying into artificial intelligence (AI) hosting, leasing over 70 megawatts (MW) of its Lake Mariner facility in upstate New York to AI and cloud provider Core42.
The move, announced on December 23, aims to complement its Bitcoin mining business and create a new revenue stream amid rising mining costs and increased competition.
$WULF Has Big News 🐺🚀 (a thread)
— TeraWulf (@TeraWulfInc) December 23, 2024
TeraWulf is thrilled to announce long-term data center leases with our first #AI customer, @Core42_ai (subsidiary of G42) – a prominent AI cloud and managed services provider that brings substantial financial backing and global expertise.…
Full operational capacity for the AI venture is expected between the first and third quarters of 2025.
CEO Paul Prager highlighted the strategic value of this shift, emphasizing the growing demand for scalable and energy-efficient infrastructure.
This diversification comes as the cost to mine Bitcoin rose by 13% in the third quarter of 2024, averaging $55,950 per Bitcoin, forcing many miners to explore alternative revenue sources.
Despite reporting a quarterly loss of 6 cents per share, TeraWulf has benefitted from Bitcoin’s recent price surge, which surpassed six figures for the first time.
TeraWulf has achieved notable success in 2024, with its stock climbing 152.6% year-to-date despite a recent 12.1% dip.
The company remains focused on organic growth, shareholder returns, and leveraging its existing infrastructure.
Its expansion into AI hosting positions it to mitigate the impact of rising mining costs and strengthen long-term profitability.
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