TeraWulf Clears Debt, Boosts AI Focus Amid Share Surge


Bitcoin mining company TeraWulf Inc. has repaid its remaining $77.5 million term loan ahead of schedule, eliminating all its outstanding debt, an action that grants the company greater financial flexibility to capitalize on the growing demand for energy infrastructure, particularly for powering generative AI technology. The company announced on Tuesday its plans to exploit generative AI to cut down on funds and outflows.

TeraWulf’s shares have experienced significant growth, more than doubling this year, driven by the rising demand for AI hosting. This upward trend mirrors the success of other Bitcoin miners, such as Core Scientific, which recently secured $3.5 billion in hosting contracts with AI startup CoreWeave. Despite a dip of 8% on Tuesday, TeraWulf (WULF) shares are still up over 140% compared to a year ago.

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With all its debt cleared and a sharpened focus on AI infrastructure, TeraWulf is now well positioned to leverage its energy assets for future growth. The company’s movement is representative of a broader trend among Bitcoin miners, who are increasingly transitioning their operations to high-performance computing (HPC) data centers to support the development of AI technology.

Currently, TeraWulf operates Bitcoin mining facilities that are powered by 95% zero-carbon energy. The company has ambitious plans to expand its operational infrastructure capacity from 210 megawatts to 295 megawatts within this year, with the potential to add another 300 megawatts in the near term. A significant part of this expansion includes a high-performance computer project at its Lake Mariner facility in New York, which is designed to power the graphics processing units essential for generative AI.

While TeraWulf and Core Scientific have managed to outperform their competitors, other miners such as Marathon Digital and Riot Platforms have faced challenges, primarily due to concerns over diminishing profits and subsequently declining share values.