Bitcoin mining firm TeraWulf has reported a substantial increase in its Bitcoin rewards after scaling up its mining capacity in the first half of 2023. According to the company’s recent filing with the US Securities and Exchange Commission, TeraWulf successfully mined 1,441 BTC in the first two quarters of the year, with 508 BTC in Q1 and an additional 375 BTC in Q2.
Increased Hash Rate and Mining Yields Surge Company Revenue
The expansion in hash rate and self-mined BTC has resulted in a remarkable uptick in the company’s quarterly revenue, soaring from $11.5 million to $15.5 million in Q2. TeraWulf attributes this improvement to the combination of its elevated hash rate and the recovering valuation of Bitcoin in the market.
Expansion Plans and Operational Figures
TeraWulf currently operates over 50,000 advanced Bitcoin miners across its New York-based Lake Mariner facility and the nuclear-powered Nautilus operation in Pennsylvania. The company’s operational hash rate stands at 5.5 exahashes per second (EH/s), supported by 160 megawatts (MW) of miner capacity across both sites.
TeraWulf’s nuclear-powered Nautilus mining location.
The company’s ambitious growth strategy includes an expansion of its Lake Mariner site by an additional 43 MW by the close of 2023. This expansion will house 18,500 new-gen S19j XP miners from renowned Chinese manufacturer Bitmain. With this enhancement, TeraWulf anticipates boosting its self-mining hash rate by an impressive 58%, elevating it from 5.0 EH/s to 7.9 EH/s.
Hut8 Faces Q2 Setback, Diversification Plans Underway
In contrast, Hut8, another BTC mining entity, experienced a dip in hash rate and self-mined Bitcoin in Q2 2023, as revealed in their mid-year results. The company mined 399 BTC in the quarter, marking a 58% decrease from Q2 2022. Hut8 attributes this decline to multiple factors, including the heightened difficulty in Bitcoin mining, operational pauses at their North Bay Facility, and persistent electrical challenges at their Drumheller site.
Diversified Operations and Future Prospects
Hut8 is actively diversifying its infrastructure away from exclusive Bitcoin mining. Their high-performance computing operation consistently generates an average of $4 million per quarter, with expectations of growth following their upcoming five-year contract as a computing infrastructure provider to Interior Health, commencing in late 2023.
Hindered by high energy inputs causing equipment failures, Hut8’s Drumheller site suffered a 20% reduction in installed hash rate. Presently, the company holds a self-mined Bitcoin balance of 9,136 BTC, valued at approximately $368.7 million. During Q2, they sold 396 of the 399 BTC mined, generating $14.7 million in revenue. Hut8 envisions increased hash rate capacity following an anticipated merger with US Bitcoin.