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Bitcoin miner TeraWulf agreed to an additional $50 million in loans with existing lender Wilmington Trust as it looks to complete the data center infrastructure at its Lake Mariner facility in New York and Nautilus Cryptomine facility in Pennsylvania.
The previous loan between the two was for $123.5 million, and the new $50 million in borrowings accrues interest at 11.5% and matures on Dec. 1, 2024, according to a filing with the U.S. Securities and Exchange Commission. TeraWulf is one of the most indebted publicly listed miners compared with its equity, data analyzed by CoinDesk has shown.
Bitcoin miners have seen their revenues dwindle as the price of crypto has lost about half of its value this year, with some resorting to selling long-held bitcoin tokens to pay their debts and operating costs.
TeraWulf wants to not only be "resilient and securely positioned," but also in position to "take advantage of certain value-creating opportunities that might otherwise not be available during more healthy markets," Chairman and CEO Paul Prager said in a Tuesday press release.
Maryland-based TeraWulf has received its first batch of 3,000 Bitmain Antminer S19 XP mining rigs for its Lake Mariner facility in upstate New York, according to the press release. The miner expects this batch to be running by August, adding to the 3,300 that are now operating at that mine.
Upon completion of work at Lake Mariner, the company expects to have 50 megawatts of capacity there. The Nautilus Cryptomine facility in Pennsylvania remains on track to be operational in the third quarter.
TeraWulf has put down $60 million in deposits for mining rigs, which it can use to buy monthly batches of machines at the then-current prices, the press release added.