Home » Bitcoin miner TeraWulf raises $17M in Q3, but here’s the catch

Bitcoin miner TeraWulf raises $17M in Q3, but here’s the catch

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  • riot blockchain report Q3 2022 revenue of $46.3 million
  • Australian crypto mining group Iris Energy has received a default notice from Bitmain Technologies.

Bitcoin mining company TeraWulf has raised $17 million in the third quarter of 2022.Terrawolf launched settlement We revealed details for the third quarter (July-September 2022) last night (November 14).

Of the $17 million, $9.5 million will be part of equity raised from existing investors, and $7.5 million will come from incremental income from the company’s term loan.

In addition, $138.5 million of term loan principal was outstanding at the end of the quarter.

Third quarter revenue increased 179% to $3.9 million from $1.4 million in the second quarter. Cost of revenue as a percentage of revenue in the third quarter increased to 134% compared to 43% in the second quarter. This rise can be attributed to relatively high electricity costs and the rapid expansion of mining operations.

TeraWulf self-mined 117 Bitcoin (BTC) coins during this period, generating $3.9 million worth of revenue. However, the cost of electricity per Bitcoin increased from $15,365 in Q2 2022 to $20,732 in Q3 2022.

TeraWulf’s hashrate increased significantly during the period. This will bring 50 MW of power to the New York mining facility, increasing the total online capacity to 60 MW. We hope to increase the total capacity of the facility to 110 MW by the first quarter of 2023. The hashrate target for this period is around 5.8 EH/s.

Crypto mining companies facing solvency?

Other cryptocurrency mining companies have also performed poorly in the bear market.

Texas-based cryptocurrency mining group Core Scientific issued There was a warning through last month’s SEC filing that it could lead to solvency as its financial situation has been adversely affected by falling Bitcoin (BTC) prices, rising power costs and a lawsuit with Celsius. did.

Last month, London-based mining company Argo Blockchain announced Via a press release saying it failed to raise $27 million worth of funding from strategic investors and will continue to raise capital. The company warned that it would be forced to close its business if these efforts failed.

riot blockchain report Third quarter 2022 revenue of $46.3 million. However, it was expected to earn an estimated $56.3 million during the period. During the period he issued 1,042 Bitcoins (BTC).

Meanwhile, Australian crypto mining group Iris Energy has received a default notice from Beijing-based mining rig maker Bitmain Technologies for failing to repay a loan worth $103 million.discovery is clearly Listed in Iris Energy’s SEC filings.

Several major miners facing liquidity problems may file for bankruptcy as this bear market tumbles further as the narrative around the FTX crash unfolds.

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