The TeraWulf involved in the cryptocurrency mining sector ,is advancing into high-performance computing and AI, with upcoming construction at Lake Mariner designed to add 50 MW of capacity by Q1 2025.
TeraWulf’s Mixed Q2: Lower Bitcoin Output, Higher Revenue
In its Q2 2024 earnings report, TeraWulf reported a 21% decline in Bitcoin mining to 699 coins. Nevertheless, the company’s revenue of $35.6 million slightly exceeded the projected $35.4 million. The company missed earnings expectations, posting a loss of $0.03 per share instead of the expected $0.02. The main reason for this larger loss was the big rise in mining costs.
TeraWulf saw a staggering 243% increase in Bitcoin mining expenses year over year, with costs escalating from $6,688 per Bitcoin in Q2 2023 to $22,954 per Bitcoin in Q2 2024.
The increase in costs was driven by a major rise in network difficulty and the impact of April’s Bitcoin Halving, which cut the Bitcoin reward for miners.
TeraWulf’s Upcoming Vision
TeraWulf is transitioning to high-performance computing (HPC) and artificial intelligence. Construction has started on a new building at its Lake Mariner site, which will increase infrastructure capacity by 50 megawatts (MW) by Q1 2025.
TeraWulf plans to allocate 2 MW of its new capacity to high-performance computing (HPC) and artificial intelligence (AI), starting with the acquisition of a 128-GPU cluster from NVIDIA, as announced in July.
Kerri Langlais, TeraWulf’s Chief Strategy Officer, indicated that the company is considering mergers to boost profit margins. This follows recent merger activities in the sector, such as Riot Platforms’ failed $950 million bid for Bitfarms.
TeraWulf’s growing mining expenses reflect the difficulties of achieving profitability in a fiercely competitive Bitcoin mining industry. Adopting high-performance computing may be a smart strategy to address these issues.
