Bitcoin mining company TeraWulf has expressed its openness to considering a merger if it presents an opportunity to increase profit margins. However, the company’s chief strategist, Kerri Langlais, emphasized that they are not interested in mergers for the sole purpose of “empire building” or superficial growth. Langlais stated that TeraWulf focuses more on organic growth at its existing sites and delivering returns to its shareholders. The discussion around mergers and acquisitions in the mining sector has intensified following the recent Bitcoin halving. Langlais expects to see more M&A offers in the Bitcoin mining industry, but notes that valuations vary widely, making it challenging to identify worthwhile deals. Currently, Bitcoin miners are valued based on enterprise value relative to revenue and hashrate, but Langlais believes there should be a shift towards profitability and EBITDA, similar to traditional commodities businesses. TeraWulf has diversified its revenue streams by investing in other ventures such as AI and high-performance computing. The company anticipates challenges in expanding due to increasing competition for sites and power resources from hyperscalers. The intense competition has driven up land and power prices, impacting the profitability of new Bitcoin mining projects. Despite this, TeraWulf remains profitable, especially since it mines most of its Bitcoin using nuclear energy. As long as Bitcoin’s price stays above $40,000, the company expects to maintain profitability.
Bitcoin mining company TeraWulf is willing to merge but not for the purpose of expanding its empire