TeraWulf Raised $17M in Q3, but Cash Reserves Stay Low
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Composition of TeraWulf $17 million
The $17 million was composed of $7.5 million in additional loan funds and $9.5 million in stock from pre-existing investors. According to the statement released Monday, the term lender's outstanding principal balance at the end of the third quarter was $138.5 million. Some of the largest miners are experiencing liquidity problems that might push them into bankruptcy, and cash flow is a critical factor in determining how well miners can survive the bear market.
The energy prices in New York State, where TeraWulf does most of its business, skyrocketed during the quarter, and the company's increased energy demand as a result of new activities. Compared to Q2, the miner's cost-to-revenue ratio was 134%, up from 43%. According to the statement, the miner is attempting to lower prices until 2023.
Stock Prices of Wulf
In Monday's after-hours trading on the Nasdaq, WULF stock prices fell by 0.8%. TeraWulf further claimed it had right-sized its 25% share in a partnership with a Talen Energy affiliate. The project involves the 200 MW Nautilus mine in Pennsylvania.