Bitcoin Mining Firm TeraWulf Resorts to New Ways to Pay Its Debts

Bitcoin Mining Firm TeraWulf Resorts to New Ways to Pay Its Debts
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Bitcoin Mining Firm TeraWulf Resorts to New Ways to Pay Its Debts.

The Maryland-based mining company also said it has renegotiated a previous contract with Bitmain to add 8,200 new machines to its fleet.

Bitcoin miner TeraWulf (WULF) has raised around $10 million in new capital to pay off some debt while agreeing to buy 8,200 new miners from Bitmain, the company announced Monday. TeraWulf raised $10 million through an underwritten offering of $6.7 million in common stock and $3.4 million in convertible promissory notes to certain of its executives. In November, TeraWulf announced that it had raised $17 million in equity and debt.

The Maryland-based mining company also said it has restructured its first tier contract with bitcoin developer Bitmain to add 8,200 new machines to its fleet at no additional cost using Bitmain’s remaining deposits. without using it.

“With the delivery of another 8,200 miners, the company increases its own estimate for Q1 2023 to 44,450 miners held (5.0 EH / s) from its previous estimate of 36,250 miners . Prisoners (4.3 PE / s), “said TeraWulf.

TeraWulf shares fell around 37% to $0.76 in early trading Monday. WULF has risen from below $0.80 to $1.21 in the past week before the first announcement of its purchase agreement with Bitmain. The negative sentiment in early trade today may be a correction from its big jump last week. Many other publicly traded bitcoin miners have suffered in recent months, caught between a drop in the crypto’s price and high energy costs.

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