Fresh Capital Helps Terawulf Raise $10 Million To Pay Down Debt
The latest reports involving Terawulf suggest that the firm has successfully generated $10 million from new capital. The firm has also reportedly restructured its deal with Bitmain securing many ASICs.
Terawulf Raised a Substantial Capital
The officials at Terawulf have announced that they recently raised a huge capital. They were able to generate $10 million from the new capital.
The firm has also managed to restructure its deal with the likes of Bitmain, the largest mining equipment manufacturer in the entire world.
Following their deal, they will be able to acquire thousands of ASIC mining rigs from Bitmain. The reports confirm that Bitmain will be delivering a total of 8,200 mining rigs to Terawulf.
Struggles Continue for Bitcoin Miners
Throughout the ongoing year, the Bitcoin mining firms have continued facing major losses. This is because the trading price of Bitcoin has continued moving in the bearish zone.
The price of BTC has hit a price as low as around $15,600 in recent months, which is the lowest price hit by BTC since early 2020.
As a result, many mining firms are finding it difficult to make it through the complex situation. Many small-time mining firms have already stopped their mining operations.
This is because while the price of the BTC is declining, the energy and maintenance costs are rising for running the mining centers.
Mining Centers Taking Advantage of Market Downfall
The larger mining firms are still using their resources to make it through the difficult times.
However, they are also finding it very favorable to buy new rigs because they have lost their value tremendously since the start of 2022.
With the BTC price losing its traction, the mining rigs have also lost their worth because no one wants them. The prices of the mining rigs have fallen tremendously, which is a huge opportunity for the mining centers.
This is the perfect time for the surviving Bitcoin mining firms to accumulate as many mining rigs as possible at very low rates.
Terawulf is Benefiting from the Same Situation
Terawulf seems to be benefiting from the same situation as it has reportedly raised capital to purchase a huge batch of ASICs.
The firm will be using the same capital to pay off the debts that it has been trying to pay off for a long time. However, the firm was unable to do it given the lowering price of Bitcoin.
The capital raised from the funding will be used to pay off the Yorkville advance. With that out of the way, the company will proceed with issuing a termination notice to Yorkville for the SEPA entry.
Restructured Deal with Bitmain
Terawulf has also restructured its deal with Bitmain which would see the company acquiring a large batch of ASICs.
The reports confirm that the company has finalized its negotiations with Bitmain for adding a total of 8,200 ASICs to its mining operations.
At present, the total number of mining rigs being operated by Terawulf are 36,250. After the acquisition of 8,200 more applications, the company will have increased its overall holding to 44,450 rigs.
With the help of the new batch of ASICs, the company’s overall hashrate would surge over 5 EH/s. As of now, the overall hashrate for Terawulf is at 4.3 EH/s.
Terawulf has not been performing well in terms of its share price performance. The data suggests that the share prices for the company have dipped 56.07% in the past six months.
From year to date, the share prices for Terawulf have dipped by 93.89%. The latest announcements made by Terawulf have actually helped the company recover some of its share prices in the past five days.
Following the announcements, the share prices for Terawulf have surged 14.69%. With the inflation rates moving downwards and the lowering interest rates, there is a chance that investments may rise in Bitcoin.
This means that the value of Bitcoin may continue rising and thus, the mining industry may be able to rise up again.