TeraWulf Shares Drop 31% After New Purchase Agreement With Bitmain

By Chris Wack

TeraWulf Inc. shares were down 31% to 83 cents after the company said it has successfully restructured its previously announced purchase agreement with Bitmain Technologies Ltd.

The stock hit its 52-week low of 65 cents earlier in the session, and closed Friday up 17%.

The company said the deal allows it to significantly expand its self-mining capacity and fully utilize 160 megawatts of its available mining capacity expected in the first quarter of 2023.

TeraWulf and Bitmain have agreed to cancel TeraWulf's December batch of 3,000 S19 XP Pro bitcoin mining machines and, together with the application of remaining unused deposits with Bitmain, replace that batch with 14,000 S19j Pro miners for delivery in the first quarter of 2023 at no additional cost to TeraWulf.

With the incremental delivery of 8,200 miners, TeraWulf is increasing its estimated first-quarter self-mining target to 44,450 owned miners deployed from its prior estimate of 36,250 owned miners.

TeraWulf also said it has raised new capital to repay the convertible promissory note with YA II PN Ltd.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

12-12-22 1051ET