Bitcoin miner TeraWulf raised $17 million in the third quarter, but here’s the point

  • Riot Blockchain Announces Revenues of $46.3 Million for Q3 2022
  • Australian crypto group Iris Energy has received a default notification from Bitmain Technologies

Bitcoin miner TeraWulf raised $17 million in the third quarter of 2022. However, liquidity was still low at $4.5 million, at the time of writing. TeraWulf released its financial results for the third quarter (July – September 2022) yesterday evening (November 14) and revealed the details.

Of the $17 million, $9.5 million is part of equity raised from existing investors and $7.5 million comes from additional proceeds from the company’s term loan.

Additionally, $138.5 million of the revolving loan principal was payable at the end of the quarter.

Third-quarter revenue increased 179% to $3.9 million, compared to $1.4 million in the second quarter. Cost of revenue as a percentage of revenue increased in the third quarter to 134% compared to 43% in the second quarter; The increase can be attributed to relatively high energy costs and the rapid expansion of mining operations.

TeraWulf itself has mined 117 Bitcoin (BTC) and generated $3.9 million in revenue over the period. However, the energy cost per bitcoin increased from $15,365 in Q2 2022 to $20,732 in Q3 2022.

TeraWulf’s hash rate has grown significantly during this period. It has powered a mining facility in New York by 50 megawatts, bringing its total online capacity to 60 megawatts. It hopes to increase the facility’s total capacity of 110 MW by the first quarter of 2023. The target hash rate for this period is around 5.8 EH/s.

Cryptocurrency mining company facing solvency?

Other cryptocurrency miners are also not doing well in a bear market.

Texas-based group Core Scientific issued a warning through its SEC filing last month that it could face bankruptcy because its financial position has been negatively affected by the drop in the price of Bitcoin (BTC), rising energy costs and litigation with C.

Last month, London-based miner Argo Blockchain announced via a press release that it had failed to raise $27 million in capital from a strategic investor and would continue the search. The company has warned that if these efforts fail, it will have to close its operations.

Riot Blockchain announces revenue of $46.3 million for the third quarter of 2022; However, she was expected to earn an estimated $56.3 million USD during this period. 1,042 Bitcoin (BTC) were minted during this period.

On the other hand, Australian crypto-mining group Iris Energy received a virtual notice from Beijing-based mining rig maker Bitmain Technologies that it had not repaid a $103 million loan. The result was disclosed in Iris Energy’s Securities and Exchange Commission filing.

Several major miners facing liquidity issues may file for bankruptcy as the bear market continues further as the FTX crash saga unfolds.

Leave a Reply

Your email address will not be published. Required fields are marked *