TeraWulf completes $92M sale of 25% equity interest in Nautilus to Talen Energy

TeraWulf (WULF) announced it has completed the sale of its 25% equity interest in the Nautilus Cryptomine joint venture to its partner, a subsidiary of Talen Energy (TLN), in a transaction valued at approximately $92M that will help fuel expansion of HPC/AI and bitcoin mining at the company’s wholly-owned Lake Mariner facility and position TeraWulf for substantial value creation. This transaction allows TeraWulf to achieve a 3.4x return on its investment in Nautilus. The $92M consideration consists of $85M in cash and approximately 30,000 Talen-contributed miners and related equipment valued at around $7M. TeraWulf intends to reinvest this capital into the construction of the 20 MW CB-1 facility at Lake Mariner, which is designed for hosting HPC/AI data centers. In addition to the CB-1 facility, TeraWulf aims to complete the construction of the mining building 5, “MB-5”, and maintains its operational target of over 13 EH/s by Q1 2025. The Company also plans to enhance the efficiency of its mining fleet to achieve 18.2 J/TH. This transaction underscores TeraWulf’s dedication to operational efficiency, cost management, and long-term shareholder value, while also demonstrating proactive risk management. By monetizing its interest ahead of the expiration of the $0.02/kWh power contract and ground lease in June 2027, TeraWulf strategically positions itself to redeploy resources to its Lake Mariner facility in New York. Furthermore, the sale of TeraWulf’s minority interest in Nautilus will streamline its consolidated financial statements, enhancing transparency and comparability for shareholders. TeraWulf recently completed a 2 MW AI/HPC proof-of-concept project, designed to support both current and next-generation GPU technology. Additionally, the company is constructing a 20 MW colocation building, CB-1, at Lake Mariner, engineered to handle a critical IT load of 16 MW with advanced liquid cooling and Tier 3 redundancy features. Re-investing the proceeds from this transaction keeps CB-1 on track to be operational in Q1 2025. The next building, CB-2, has a planned gross capacity of 50 MW and is targeted for completion in Q2 2025.