Hut8 and TeraWulf Look to Increase Crypto Profits in Q2

TeraWulf Sees Drastic Increase in BTC Rewards

Since the beginning of 2023, Bitcoin (BTC) mining firm TeraWulf has seen a major boost in BTC rewards due to its increased mining capacity. According to the company’s latest filing with the United States Securities and Exchange Commission, TeraWulf mined a total of 1,441 BTC in the first half of the year, with 508 BTC mined in Q1 and 375 BTC mined in Q2.

The improved hash rate and mined BTC also caused a surge in quarterly revenue for the company, increasing from $11.5 million to $15.5 million in Q2. TeraWulf attributed the growth to its increased hash rate and the recovering market value of Bitcoin.

The firm now holds over 50,000 new-generation Bitcoin miners, which are spread across its Lake Mariner site in New York and its nuclear-powered Nautilus operation in Pennsylvania. Its operational hash rate is 5.5 exahashes per second (EH/s), while it has 160 megawatts (MW) of capacity for miners at the two sites.

TeraWulf and Hut8 Mining Expansion and Decrease

TeraWulf has announced that it will expand its operation at Lake Mariner by an additional 43 MW by the end of 2023, with the new building in New York to host 18,500 of the latest S19j XP miners from Chinese manufacturer Bitmain. This will increase the firm’s self-mining hash rate by 58%, from 5.0 EH/s to 7.9 EH/s.

In contrast, Hut8 reported a decrease in hash rate and self-mined Bitcoin in Q2 of 2023, with only 399 BTC mined in that quarter. This is a 58% decrease compared to Q2 2022, and can be attributed to the overall increase in Bitcoin mining difficulty, the suspension of operations at the firm’s North Bay Facility, and electrical issues at its Drumheller site.

Hut8 Diversifying Infrastructure

Hut8 is expanding the use of its infrastructure beyond just Bitcoin mining. Its high-performance computing operation has been averaging $4 million in revenue per quarter, and this number is expected to rise when its five-year contract with Interior Health begins in late 2023.

The Drumheller site has been facing issues due to high energy input levels, causing some of the mining equipment to fail. This has caused a 20% reduction in the installed hash rate.

Hut8 currently holds 9,136 BTC, valued at $368.7 million. 396 of the 399 BTC mined in Q2 were sold, bringing in $14.7 million in revenue. Hut8 plans to increase its hash rate capacity once the merger with US Bitcoin is finalized.