TeraWulf Unveils Nautilus Cryptomine Facility, the First Nuclear-Powered Bitcoin Mining Site in the U.S.

TeraWulf, a Maryland-based bitcoin mining company, has announced the commencement of operations at its Nautilus Cryptomine facility in Pennsylvania. The Nautilus Cryptomine facility is the first-ever nuclear-powered bitcoin mining facility in the United States, boasting nearly 8,000 mining rigs that represent computing power of around 1.0 exahash per second (EH/s).

Expansion Plans for Nautilus Cryptomine

In a press release issued on Monday, the company shared that it expects to have an additional 8,000 mining rigs energized in the coming weeks, which will bring the facility’s capacity to 1.9 EH/s by May. TeraWulf has set a target of reaching 5.5 EH/s of computing power by the second quarter of this year.

Lower Energy Costs

The Nautilus facility will significantly reduce TeraWulf’s energy costs, as the company has secured a power agreement for 2 cents per kilowatt hour (kWh) for the next five years. This agreement will help bring down the company’s average energy costs to about 4 cents/kWh across its two facilities, which is substantially lower than the U.S. industrial average of 9 cents/kWh reported by the Energy Information Administration in December 2022. It is also lower than the variable rate that TeraWulf pays at its New York site, which averages 5 cents/kWh.

Joint Venture with Talen Energy

The Nautilus Cryptomine is a joint venture between TeraWulf and Texas energy producer Talen Energy, in which TeraWulf has a 25% interest. The facility is “the first behind-the-meter bitcoin mining facility of its kind, directly sourcing reliable, carbon-free, and 24×7 baseload power from the 2.5GW Susquehanna nuclear generation station in Pennsylvania,” according to TeraWulf.

A Boost for the Struggling Crypto Mining Industry

Like many of its peers in the crypto mining industry, TeraWulf has had a difficult time during the crypto winter, as declining bitcoin prices were coupled with rising energy costs. The company had to initiate a series of cost-cutting measures in November and raise $10 million in new capital in December to repay some of its debt. However, with the improvement in both crypto and energy markets in early 2023, the mining industry is showing signs of a recovery.

WULF Stock Movement

As of Monday, WULF stock is down 2.5% to 64 cents in recent trading.

Source: Coindesk