TeraWulf Signs Purchase Order for 30,000 Bitmain Antminer S19j Pro Bitcoin Mining Machines
Bitcoin mining firm TeraWulf has signed a purchase order of 30,000 mining machines from the largest Bitcoin machine producer Bitmain.
Mining Machines To Be Delivered In 2022
The mining machines, called the Antminer S19j Pro, will be delivered from January to June 2022 according to the announcement released by Bitmain.
After the machines are fully delivered and deployed, TeraWulf is expected to increase its total mining hashrate by three exahashes (EH/s).
The purchases made by TeraWulf are in line with its plans of operating fully integrated environmentally clean cryptocurrency mining facilities in the United States.
The Bitcoin miner recently announced plans to become a publicly traded company. For this purpose, TeraWulf has merged with Ikonics, an imaging-technology company trading on Nasdaq.
With this merger, the combined firm would bear TeraWulf's name and will trade in the capital market under the ticker symbol, “WULF”. Speaking on the agreement with Bitmain, TeraWulf’s Chairman and Chief Executive Officer, Paul Prager said,
“With Bitmain’s miners in place, we expect to substantially increase our total mining hashrate, furthering our efforts to generate environmentally sustainable bitcoin at an industrial scale. We are confident that we can continue to leverage our strong partner relationships as we seek to position our company as the leading miner of sustainable Bitcoin globally.”
TeraWulf is focused at being an environmentally sustainable Bitcoin mining firm targeted at ESG practices through its business methods, determined clean energy goals, and support for its communities.
The miner aims to mine Bitcoin with over 90% zero-carbon energy. It currently has no less than 60,000 mining machines on order, putting it at 50 megawatts (MW) of mining capacity. TeraWulf expects that this will grow to 800 MW by 2025.
Bitmain Halts Sales In China Amid Crackdown
The news of TeraWulf’s agreement with Bitmain follows the suspension of the mining rig sales in China.
This was prompted by the latest call for the ban of Bitcoin mining by Chinese authorities. Also affected were crypto payments and trading activities in the country. This has led to the closure of several Bitcoin mining facilities in several provinces across the country like Inner Mongolia, Xinjiang, Yunnan, and Qinghai.
The domino effect was an oversaturation of mining hardware as crypto miners tried to sell off their mining rigs in the local market. This also led to a plunge in the prices of top-tier mining rigs in China making it difficult for Bitmain to continue selling its new machines.
Bitmain has a number of signed purchase deals. For instance, Burfa, a technology company, recently signed a $26 million agreement with Bitmain. This deal would see Bitmain deliver new cryptocurrency mining equipment to boost Burfa’s data-center capacity.