TeraWulf has closed a deal to buy the Muskie Data Campus in Kentucky, adding a significant chunk to its development pipeline. The acquisition expands the company's planned capacity by 36 percent, though financial terms were not disclosed.
What TeraWulf is getting
The Muskie Data Campus sits in an industrial area of Kentucky, a state that has drawn data center and crypto miners with cheap power and supportive policies. TeraWulf did not specify the exact size or power capacity of the campus in its announcement, but the company’s development pipeline now totals more than 800 megawatts. That gives TeraWulf room to grow beyond its existing facilities, including the Nautilus Cryptomine facility in Pennsylvania.
For now, TeraWulf plans to use the Kentucky site for bitcoin mining and other high-performance computing workloads. The company already operates several mining sites and has been expanding its infrastructure to keep up with network difficulty and rising competition.
Why Kentucky
Kentucky has become a hotspot for energy-intensive operations like bitcoin mining. The state offers relatively low electricity rates and a business-friendly regulatory environment. TeraWulf's move follows other miners that have set up shop in the region, including a joint venture with a local power plant operator.
The Muskie Data Campus itself was previously developed by a third party, but TeraWulf is taking over the site and will finish building it out. The company expects to have the campus operational in phases, with the first phase coming online later this year.
Pipeline growth and funding
The 36 percent increase in TeraWulf's development pipeline comes at a time when many bitcoin miners are struggling with tight margins after the halving. TeraWulf has been one of the more active acquirers, using a mix of debt and equity to fund expansions. The company's total pipeline now includes sites in Pennsylvania, New York, and Kentucky.
TeraWulf said the acquisition was financed through cash on hand and a new credit facility. The company did not provide a breakdown of the financing in the announcement.
Investors have been watching TeraWulf's expansion closely. The stock has moved up and down this year as the broader crypto market shifted, but the company's hash rate growth has kept it in the conversation among large public miners.
TeraWulf hasn't said when the full Muskie campus will be complete. The first phase is expected to start running in the fourth quarter of this year, but the timeline for the rest of the site depends on equipment deliveries and construction schedules.
