Bitcoin Mining Is Not the Same As It Used To Be
Undoubtedly, mining is not as profitable as it was a year ago. For instance, Bitcoin mining is causing more costs than the miners’ share. This is mainly because Bitcoin continues to edge down in terms of its market value.
With excessive costs and zero profits, miners are facing extreme difficulties in continuing their mining operations. Such difficulties are being faced by Terawulf, which is a prominent miner and a publicly listed mining company.
Terawulf Succeeds In Reducing the Hardships
Terawulf was undergoing financial difficulties and was facing hardship in the settlement of its debts.
However, the publicly listed miner on NASDAQ made an important announcement on 12th December 2022.
In the announcement, the mining firm informed that it has successfully raised a fund exceeding $10 Million. The firm also revealed that the raised funds shall exclusively be utilized to pay off the firm’s debtors.
Aims At Ending SEPA Agreement
In corroboration with the announcement, Terawulf’s press release explained that the firm plans to utilize collected funds for advance repayment towards Yorkville.
The said payment will convince Yorkville to end the agreement called “SEPA” executed on 2nd June 2022.
Convinces Bitmain to Supply Further Machines On Top Of Existing Deal
On other hand, Terawulf has been able to convince Bitmain to rearrange the earlier deal. As part of the deal, Terawulf shall be entitled to receive 8,200 further ASIC Bitcoin mining rigs from Bitmain.
It said that the restructured deal will subsequently enhance the mining firm’s Bitcoin mining production by accelerating Terawulf’s Bitcoin hashpower.
Terawulf further informed that with the addition of 8,200 mining rigs, the firm would be able to enhance its targeted capacity.
As per the past estimate of the firm, it was desirous of running Bitcoin mining operations with 36,250 ASIC units.
Targets at Boosting Hashpower
However, with 8,200 further machines, Terawulf’s modified target aims at conducting Bitcoin mining operations with 44,450 machines.
The new batch would allow Terawulf to gain more prominence in the global Bitcoin mining industry.
With 36,250 mining rigs, Terawulf would be able to achieve approximately 4.3 EH/s rates. But with 44,450 machines it can raise its hashpower by at least 5 EH/s.
Crypto Economy Crisis Impact on Terawulf
Over the past 12 months, the crypto mining industry has been edging down and Terawulf is no exception. In the past six months alone, the share value of the mining company has declined by almost 57%.
Similarly, since the past year, the share value has declined approximately by 94%. Since the past week, however, Terawulf has been pleased with the shares market as its share value has increased by roughly 15%.
Stock Market Carnage
It may however be noted that the stocks pertaining to Terawulf enjoys no exception in the stock markets.
Not even corporate giants have been able to resist the economic crunch, whether they are publicly listed or private companies.
The fact is that global stock markets are facing massive value declines, particularly since November 2021. It is mainly because of the macroeconomic downtrends that have caused the stock markets to crash.
Even to this day, the stock markets are finding it difficult to find their way to a strong recovery. The major issues being caused are due to the Russian-Ukraine war, COVID in China, and the global surge in inflation.
Terawulf Well-Placed In Facing Never-Seen-Before Challenges
Terawulf’s co-founder, Nazar Khan, who also happens to be the company’s COO, stated though prevailing conditions are not sound yet, their company is well-placed.
He acknowledged that miners have been faced with circumstances that they had never thought of. However, in order to keep the industry going, huge responsibility lies over the shoulders of global miners, said Nazar Khan.
Khan explained further that the mining business has become more challenging than ever before since the beginning of 2022.