TeraWulf Sells Nautilus Stake for $92M, Expands Lake Mariner Facility
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- TeraWulf sold its 25% stake in the Nautilus Cryptomine joint venture for $92 million, securing a 3.4x return on investment and redirecting resources toward expanding its Lake Mariner facility.
- The sale allows TeraWulf to focus on high-performance computing (HPC), AI, and bitcoin mining, with new projects including its CB-1 and MB-5 facilities.
TeraWulf, a company specializing in zero-carbon digital infrastructure, has sold its 25% stake in the Nautilus Cryptomine joint venture to its partner, a subsidiary of Talen Energy, for around $92 million. This deal will support the expansion of high-performance computing (HPC), AI, and bitcoin mining at TeraWulf’s fully-owned Lake Mariner facility, positioning the company for future growth.
TeraWulf has secured a 3.4x return on its investment in Nautilus with a $92 million deal, which includes $85 million in cash and around $7 million in mining equipment. The company plans to reinvest this capital into the construction of its 20 MW CB-1 facility at Lake Mariner, designed to host HPC/AI data centers.
“This transaction further aligns TeraWulf’s focus and investments with where we have the most operational efficiency, the greatest growth potential, and the best opportunity to drive incremental value for shareholders,” said Paul Prager, Chief Executive Officer of TeraWulf.
“Monetizing our interest in Nautilus ahead of the 2027 expiration of the highly advantageous 2¢/kWh power contract allows us to capture a significant premium for our investment, provide significant capital to invest into our HPC/AI infrastructure and capitalize on our favorably structured miner purchase agreement to upgrade our mining fleet at a discount to the current market price.”
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In addition to CB-1, TeraWulf is focused on completing its MB-5 mining building and aims to surpass 13 EH/s by early 2025. The company is also working to improve mining efficiency to reach 18.2 J/TH.
This transaction highlights TeraWulf’s commitment to operational efficiency, risk management, and maximizing shareholder value. By selling its stake in Nautilus ahead of the 2027 expiration of its power contract, TeraWulf is redirecting resources to its New York facility, which offers lower costs and more favorable future power rates. The move also simplifies its financial reporting for shareholders.
TeraWulf recently finished a 2 MW AI/HPC proof-of-concept project and is building the CB-1 facility with advanced cooling and redundancy features. With CB-1 set to be operational by early 2025, the next phase, CB-2, will expand to 50 MW and is scheduled for completion in mid-2025.
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