Bitcoin mining firm TeraWulf has experienced a significant increase in BTC rewards after scaling up its mining capacity in the first half of 2023. In its latest quarterly filing with the United States Securities and Exchange Commission, TeraWulf reported mining a total of 1,441 BTC during the first half of the year. Of that total, 508 BTC was mined in Q1, while another 375 self-mined BTC was added to the company’s balance sheet in Q2.
The boost in hash rate and mined BTC has also resulted in higher quarterly revenue for TeraWulf, rising from $11.5 million to $15.5 million in Q2. The company attributes this financial improvement to its increased hash rate and the recovering market value of Bitcoin.
TeraWulf now operates over 50,000 new-generation Bitcoin miners across its New York-based Lake Mariner site and its Pennsylvania nuclear-powered Nautilus operation. The company’s operational hash rate stands at 5.5 exahashes per second (EH/s) and it has 160 megawatts (MW) of capacity for miners at both locations.
Furthermore, TeraWulf has announced plans to expand its operation at Lake Mariner by an additional 43 MW by the end of 2023. A new building in New York will host 18,500 new generation S19j XP miners from Chinese manufacturer Bitmain. With this expansion, TeraWulf estimates that its self-mining hash rate will increase by 58%, from 5.0 EH/s to 7.9 EH/s.
On the other hand, Hut8, another Bitcoin mining firm, reported a decrease in hash rate and self-mined Bitcoin during Q2 of 2023, according to its mid-year results. The company mined 399 BTC in Q2, indicating a 58% decrease compared to the same period in 2022.
Hut8 attributes this drop in mined BTC to multiple factors, including an overall increase in Bitcoin mining difficulty, the suspension of operations at its North Bay Facility, and ongoing electrical issues at its Drumheller site.
To diversify its operations away from solely mining Bitcoin, Hut8 has been focusing on its high-performance computing business, which generates an average of $4 million per quarter. The company expects this number to further increase once it begins its five-year deal as a computing infrastructure provider to Interior Health by the end of 2023.
Hut8 also highlighted the challenges faced at its Drumheller site, where high energy input levels caused some of its mining equipment to fail. As a result, 20% of the installed hash rate at that location was affected.
Currently, Hut8’s self-mined Bitcoin balance is 9,136 BTC, valued at $368.7 million. The company sold 396 of the 399 BTC mined in Q2, generating $14.7 million in revenue. Hut8 anticipates that its hash rate capacity will increase once its planned merger with US Bitcoin is finalized.
In conclusion, TeraWulf has experienced a surge in BTC rewards due to its increased mining capacity, while Hut8 has faced challenges resulting in a decrease in hash rate and self-mined Bitcoin. Both companies are taking various measures to optimize their mining operations and improve financial performance.