TeraWulf (WULF) has launched its Nautilus Cryptomine facility marking the inauguration of the first bitcoin mining facility in the US powered by nuclear energy.
New Nautilus facility opens in Pennsylvania
The mining giant has put almost 8,000 rigs into operation, generating a substantial computing power or hash rate of around 1.0 exahash per second (EH/s).
According to a press release published March 6, TeraWulf anticipates energizing an additional 8,000 rigs in the upcoming weeks, which will expand the capacity of the Nautilus facility in Pennsylvania to 1.9 EH/s by May.
TeraWulf’s energy expenses will significantly decrease due to the Nautilus facility, as the company has secured a five-year power agreement for 2 cents per kilowatt hour (kWh) of power, it said in the release.
Lowering Bitcoin average energy cost
To validate transactions and ensure the security of the network, Bitcoin utilizes a proof-of-work (PoW) mining algorithm.
However, this process requires miners, or specialized computers, to consume an enormous amount of energy, currently estimated at around 117 terawatt-hours per year, which is equivalent to the energy consumption of a small country.
This deal will bring the average energy cost down to roughly 4 cents/kWh across its two facilities, the company added, which is notably lower than the U.S. industrial average of 9 cents/kWh reported by the Energy Information Administration in December 2022.
Additionally, this rate is lower than the variable rate TeraWulf typically pays at its New York site, which averages at 5 cents/kWh.
TeraWulf’s Nautilus mine is the first behind-the-meter bitcoin mining facility to directly source carbon-free, baseload power from the Susquehanna nuclear generation station in Pennsylvania.
The company has a 25% interest in a joint venture with Texas energy producer Talen Energy, a green initiative is expected to significantly reduce TeraWulf’s energy costs, and the company is targeting to achieve 5.5 EH/s of computing power by early in the second quarter of 2023.
Despite this development, TeraWulf’s stock WULF is down 2.5% to 64 cents in Monday trading.
Despite concerns about the environmental impact of Bitcoin mining, the trend of deploying updated machines and new fleets is expected to continue, leading to a continuous increase in the global computing power used for mining, known as hash rate, since 2016.
By powering Bitcoin mining facilities with nuclear energy, it is possible TeraWulf’s Nautilus Cryptomine facility will significantly reduce energy costs and mitigate the environmental impact of Bitcoin mining.