TeraWulf to lease 70 MW to host AI as Bitcoin mining costs jump
TeraWulf is venturing into the artificial intelligence sector as Bitcoin mining costs rise. The company will lease over 70 megawatts of data center infrastructure to AI and cloud provider Core42 at its Lake Mariner facility in New York. This move aims to diversify TeraWulf’s revenue streams while continuing to support its Bitcoin mining operations. As Bitcoin mining became less profitable, with the average cash cost to mine one Bitcoin increasing by 13% to $55,950 in Q3 2024, many miners, including TeraWulf, are reconsidering their strategies. TeraWulf's CEO noted the growing demand for energy-efficient infrastructure as an opportunity for the company. Despite suffering a 12% drop in share price recently, TeraWulf’s stocks have surged 152.6% this year due to Bitcoin's price increase. The new infrastructure is expected to be operational in phases from Q1 to Q3 2025, enhancing TeraWulf's earnings potential during a challenging market for Bitcoin mining.
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