TeraWulf restructures Bitmain deal to expand self-mining capacity by 23%

TeraWulf ( NASDAQ: WULF ) said Monday it restructured its purchase deal with Bitmain Technologies to expand its self-mining capacity by 23% and fully utilize 160 MW of its available mining capacity expected in Q1. The company also raised new capital to repay the convertible promissory note with YA II PN in full and expects to issue a notice to terminate the accompanying standby equity purchase agreement. TeraWulf ( WULF ) and Bitmain agreed to cancel TeraWulf's December batch of ~3K S19 XP Pro bitcoin mining machines and replace that batch with ~14K S19j Pro miners for delivery in Q1 at no additional cost. With the incremental delivery of 8.2K miners, TeraWulf ( WULF ) increased its estimated Q1 self-mining target to ~44.5K owned miners deployed (5 EH/s) from its prior estimate of ~36.3K owned miners (4.3 EH/s). The revised Bitmain deal will enable TeraWulf ( WULF ) to fully use its 110 MW mining capacity at the Lake Mariner facility and 50 MW of net mining capacity at the Nautilus Cryptomine facility, both of which are expected to be energized in Q1. TeraWulf ( WULF ) also raised ~$10M of new capital comprised of a $6.7M registered direct stock offering in addition to the issue of $3.4M of convertible promissory notes to some of its largest shareholders. Net proceeds will be used to repay the convertible promissory note with YA II PN and for general corporate purposes.