In a strategic move, Bitcoin mining company TeraWulf has sold its stake in the 200-megawatt Nautilus mining facility to its partner, Talen Energy, for $92 million. The sale marks a 3.4x return on TeraWulf’s investment and positions the firm to pursue both AI and Bitcoin mining advancements.
$92 Million Deal Breakdown
TeraWulf’s October 3 statement highlighted the company’s plan to reinvest much of the proceeds into building a 20-megawatt facility at its Lake Mariner base in western New York. This new facility will host AI and high-performance computing data centers, underscoring the firm’s ambition to diversify beyond Bitcoin mining. The deal, worth $92 million, includes $85 million in cash and $7 million in mining equipment — 30,000 Bitcoin miners contributed by Talen.
TeraWulf stated that the expansion is part of its strategy to lower mining costs and boost profitability. Notably, the firm remains committed to using predominantly zero-carbon energy at its operations, a crucial component of its sustainability agenda.
Enhancing Operations with AI and More BTC Miners
The sale allows TeraWulf to invest in its growth while maintaining a focus on shareholder returns. The $92 million windfall will also help the company finish its “MB-5” Bitcoin mining facility. This building is expected to push TeraWulf’s operating hashrate to 13 exahashes per second by March 2025. In July, TeraWulf hinted at a potential merger to boost hashrate but emphasized that any such move would be growth-oriented, not driven by “empire building.”
Beyond the expansion into AI and computing, TeraWulf plans to reinvest in more Bitcoin miners to increase overall output and reduce the cost per mined coin, further securing its position in the competitive Bitcoin mining landscape.
The sale hands Talen Energy full ownership of the Nautilus mining site. However, in August, Reuters reported that Talen was exploring options to sell its stake in the cryptocurrency mining operation. Despite this uncertainty, the current transaction with TeraWulf solidifies Talen’s position, at least for the time being.
Stock Surge After the Sale
TeraWulf’s decision to sell its stake was well-received by investors. Following the announcement, TeraWulf’s stock (WULF) surged by 8%, rising to $4.71, according to Google Finance data. The positive market response reflects investor confidence in TeraWulf’s strategic reinvestment into AI and its core Bitcoin mining operations.
TeraWulf’s sale of its Nautilus stake marks a pivotal moment for the company as it looks to broaden its horizons while remaining committed to improving its Bitcoin mining operations. The combination of organic growth, sustainable energy practices, and strategic reinvestment has positioned TeraWulf as a forward-thinking leader in the rapidly evolving world of cryptocurrency mining and AI-driven data centers.
PI Network bulls appear to be making a comeback, thanks to an improvement in overall market sentiment over the past 24 hours.
The token’s price has climbed by 4% in the past 24 hours, sparking speculation about whether a new bullish phase is about to begin.
Buy Pressure Builds in PI
PI’s 4% uptick has triggered a bullish crossover on its Moving Average Convergence Divergence (MACD). For context, the token’s MACD line (blue) has just crossed above its signal line (orange) for the first time since July 1, signaling growing bullish momentum.
The MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.
As with PI, when the MACD line crosses above the signal line, it signals bullish momentum, suggesting that buying activity is increasing. Traders interpret this setup as a buy signal, which could add more upward pressure on the meme coin’s price.
While PI’s MACD and signal lines remain below zero because of its prolonged bearish trend, this crossover highlights a cooldown in selloffs as bulls attempt to regain market control.
Further, readings from the PI/USD one-day chart show its Balance of Power (BoP) at 0.61, indicating that buy-side pressure is gaining strength.
The BoP indicator measures the strength of buyers versus sellers in the market, helping to identify momentum shifts. When its value is negative, sellers dominate the market, with little to no buyer resistance.
Conversely, positive BOP readings like this suggest buyers dominate the market over sellers and drive newer price gains.
Can Buying Pressure Carry PI Across the Line?
PI currently trades below resistance at $0.477. If demand climbs, the altcoin could flip this barrier into a support floor, propelling its price toward $0.508.
However, for PI to sustain this upward momentum and push toward higher resistance levels, there must be a significant influx of new demand to absorb the existing supply.
Without fresh buying pressure, the current rally could quickly lose steam. In that case, PI risks slipping back into its previous consolidation range—or worse, falling toward the $0.445 support level.
Speculation about Nvidia adding Bitcoin to its treasury reserves has surfaced recently. These unconfirmed reports lead to questions about the potential for increased institutional adoption of Bitcoin and the possible performance of such a move for Nvidia, whose stock value has fallen considerably this year.
BeInCrypto interviewed representatives from Banxe, FINEQIA, CoinShares, Bitunix, and Acre BTC to discuss Bitcoin’s potential benefits for Nvidia and explore whether such an investment would ultimately benefit the company in the long run.
Rumors of Nvidia’s Potential Bitcoin Investment
Over the past few weeks, several reports have surfaced across social media suggesting that Nvidia, a pioneer in GPU-accelerated computing, is considering adding Bitcoin to its balance sheet.
These reports remain purely speculative at the time of press, given that Nvidia has not made any official statements on the topic. When BeInCrypto reached out for clarification, an Nvidia spokesperson declined to comment.
Even as rumors, these reports highlight the significant impact of such a decision on Bitcoin’s public perception. Given Nvidia’s current economic circumstances, marked by a substantial drop in stock value, an announcement of this nature would not be completely unexpected.
As such, Nvidia’s stock price has taken a hit. According to recent reports, Nvidia stock has fallen 35% since its latest price peak in January.
Nvidia’s stock reacted especially poorly to the news that China’s Huawei Technologies is testing a new AI chip potentially more powerful than Nvidia’s H100.
Given these circumstances, Nvidia can mitigate current economic challenges by diversifying its treasury assets.
Should Nvidia Consider Adding Bitcoin to Its Balance Sheet?
Such a move would significantly alter how other institutional investors view Bitcoin, potentially encouraging more companies to adopt a similar strategy. The crypto community would likely celebrate the news, believing it would solidify Bitcoin’s legitimacy as an asset class.
However, the extent to which Nvidia requires Bitcoin for stability remains controversial.
Risks of Adding Bitcoin to Nvidia’s Treasury
As it is, Nvidia already has other strategies that help the company hedge against volatility and inflation. Adding Bitcoin into the mix may seem excessive.
This becomes especially true when considering just how volatile Bitcoin itself can be. Though the asset can generate significant gains during bullish periods, the losses it can cause are equally severe.
As such, Bitcoin might not be the natural choice to defend Nvidia from its current stock declines. An investment of this kind would need to reflect a long-term strategy rather than an impulse decision.
Would BTC Even Make a Difference on Nvidia’s Share Price?
Bitcoin has demonstrated high returns over the long term, though with considerable volatility. For companies able to withstand the associated risks, including large price fluctuations, it offers the potential for significant future profits.
With its substantial financial resources, Nvidia could absorb Bitcoin’s volatility without a major impact on its balance sheet. In this sense, the company has little to lose, but also little to gain.
Ultimately, Nvidia’s decision to invest in Bitcoin hinges on timing and urgency, particularly given recent developments that have alleviated some pressures on the company.
Easing Export Restrictions: A Boost for Nvidia
Last week, the Trump administration announced its plans to roll back certain Biden-era export restrictions on advanced semiconductor chips.
Biden’s ‘AI Diffusion Rule’ established these restrictions to enhance US technological leadership by preventing advanced chips from being diverted to countries of concern, especially China. Given that China was Nvidia’s main buyer, the rule significantly hampered its sales.
A rollback would be highly advantageous for Nvidia’s sales, especially amid this new wave of chipmakers.
Similarly, the recent US-China tariff pause led to Nvidia’s stock price rise. Despite its temporary nature, the news is a positive sign for the company, promising reduced uncertainty and potential gains in sales and supply chain stability.
Considering these developments, adding Bitcoin to Nvidia’s balance sheet may no longer be urgent. If Nvidia were to make such a decision out of haste, it might also drive away traditional investors and long-time buyers.
Many areas of traditional finance remain highly skeptical of Bitcoin due to its short history and highly volatile nature. If Nvidia adds Bitcoin as a treasury asset, traditional investors might view it as a poor decision, potentially alienating long-time clients.
YZi Labs (formerly Binance Labs) has announced its investment in Plume Network (PLUME). It is a fully integrated modular blockchain designed for the rapid adoption and integration of real-world assets (RWAs).
The investment marks a significant step in advancing blockchain infrastructure that seamlessly bridges traditional finance with decentralized finance (DeFi), further expanding the Real World Asset Finance (RWAfi) ecosystem.
YZi Labs Backs Plume Network to Grow RWAfi Ecosystem
“At YZi Labs, we invest in projects that harness blockchain technology to create real-world impact and Plume is a prime example—they are bringing real-world assets on-chain to unlock new capital, expand access, and drive adoption. By making RWAs as seamless as any other digital asset, Plume is bridging traditional finance and DeFi, paving the way for broader adoption,” Coniglio told BeInCrypto.
Notably, Plume Network provides an Ethereum Virtual Machine (EVM)-compatible environment that facilitates onboarding a wide range of assets. These include financial instruments, carbon credits, GPUs, and collectibles. Additionally, it seamlessly integrates these assets into a composable RWAfi ecosystem, enhancing their utility and enabling broader financial interactions.
Through its composable ecosystem, Plume enables users to earn rewards, trade, borrow, lend, swap, and engage in market speculation. By integrating real-world assets on-chain, Plume ensures they are as accessible and user-friendly as traditional crypto tokens.
Meanwhile, Chris Yin, co-founder and CEO of Plume, stressed that the platform aims to address the longstanding infrastructure gap that has hindered the widespread adoption of RWAs in the crypto space.
“Although stablecoins, the original RWA, have successfully proven to onboard new users into crypto, the rest of RWAs have struggled to achieve the same traction. With Plume, asset issuers of all kinds can become Web3 builders, seamlessly connecting to our community, ecosystem, and liquidity,” Yin said.
Despite its strong yearly performance, the RWA has faced a recent pullback. Month-to-date (MTD) sector performance data shows a -12.1% decline, suggesting a correction following its rapid growth. Bitcoin and Ethereum also posted losses, indicating a broader market downturn rather than an RWA-specific issue.
