Bitcoin Mining firm TeraWulf raises $200M


The environmentally-minded Bitcoin mining firm TeraWulf has raised $200 million in debt and equity financing with the contribution of individual and institutional investors.

As per the announcement by the company, it aims to use the funding to achieve mining power of 6 exahash per second by June 2022. 

Paul Prager, the chairman and CEO of the company, says, “TeraWulf’s ability to raise private capital underscores the attractiveness of bringing a new paradigm for cryptocurrency mining to the public markets.” He goes on to say that the seasoned team’s energy infrastructure advancements would help the company to be able to quickly deploy capital as it builds a mining operation bigger than any other Bitcoin mining firm. “We look forward to building on our core ESG focus and pursuing our goal of producing bitcoin powered by 100% zero-carbon energy,” he adds.

Notably, the Chinese crackdown on Bitcoin mining forced them to shift to crypto-friendly countries like Kazakhstan. China also cited massive energy consumption as the biggest problem behind the ban.

The financing consists of a three-year senior secured term loan worth $123.5 million and subscription agreements with investors worth $76.5 million to buy newly issued shares of the common stock of the company.

For TeraWulf’s debt and equity financing, the famous investment bank Moelis served as the exclusive placement agent.

The unique covenant structure of TeraWulf

TeraWulf announced on June 25 that it will merge with Ikonics (IKNX), a Nasdaq-listed company, to become public and operate under the symbol “WULF.” The agreement is scheduled to be completed around December 13, according to the miner.

Prager continued:

“We believe our flexible covenant structure is unique in the bitcoin mining industry, allowing us to operate and scale the business free of restrictions while concentrating on executing our plan.”

TheCoinRise published an article that shows that many Bitcoin mining companies are turning their attention to nuclear energy to reduce carbon emissions to the bare minimum.

TeraWulf was founded with the goal of owning and operating fully integrated, environmentally friendly bitcoin mining operations in the United States. 

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