TeraWulf (WULF) has launched the Nautilus Cryptomine facility to mark the inauguration of the first nuclear-powered Bitcoin mining facility in the United States.
New Nautilus facility opens in Pennsylvania
The mining giant operates nearly 8,000 rigs, generating a significant computing power or hash rate of around 1.0 exahash per second (EH/s).
According to the press release It was published On March 6, TeraWulf expects to power an additional 8,000 rigs in the coming weeks. This will allow him to expand the capacity of his Nautilus facility in Pennsylvania to 1.9 EH/s by May.
TeraWulf’s energy costs are greatly reduced by the Nautilus facility. He has secured a five-year power contract at 2 cents per kilowatt hour (kWh), the company said in a release.
Lowering the Average Energy Cost of Bitcoin
To validate transactions and ensure network security, Bitcoin utilizes the Proof of Work (PoW) mining algorithm.
However, this process requires miner or specialized computers to consume an enormous amount of energy, currently estimated at about 117 terawatt hours per year. This corresponds to the energy consumption of a small country.
The deal will bring average energy costs down to about 4 cents/kWh across the two facilities, the company added. This is significantly lower than the US industry average of 9 cents/kWh reported by the Energy Information Administration in December 2022.
Moreover, this rate is lower than the variable rate TeraWulf typically pays at its New York site, which averages 5 cents/kWh.
TeraWulf’s Nautilus mine is the first behind-the-meter Bitcoin mining facility to source carbon-free baseload electricity directly from the Susquehanna nuclear power plant in Pennsylvania.
The company has a 25% interest in a joint venture with Texas energy producer Talen Energy, and green initiatives are expected to significantly reduce TeraWulf’s energy costs. We aim to reach 5.5 EH/s of computing power by the beginning of . in 2023.
Despite these developments, TeraWulf’s shares WULF fell 2.5% to 64 cents in Monday trading.
Despite concerns about the environmental impact of bitcoin mining, the trend to deploy updated machines and new fleets is expected to continue, and since 2016, the global average used for mining, known as hash rate, has increased. It leads to a continuous increase in computing power.
By powering Bitcoin mining facilities with nuclear energy, TeraWulf’s Nautilus Cryptomine facility has the potential to significantly reduce energy costs and reduce the environmental impact of Bitcoin mining.
