Mining company TeraWulf has revealed that its debt obligation has now been fulfilled after making a final payment of $77.5 million. The company shared the delightful update in a press release Tuesday, stating that the payment includes pre-payment fees and accrued interest.
TeraWulf declared that the full repayment of its term loan is coming ahead of schedule. However, that does not come as a surprise given that it has always been committed to financial prudence and resiliency, the company said. By making this payment, TeraWulf says it can now focus on better performance and the overall growth of its mining business. The company statement reads partly:
“After paying off the term loan, the Company has no outstanding debt and has thereby maximized financial flexibility to scale and deploy its valuable and low-cost energy infrastructure for bitcoin mining and high-performance computing (HPC)/AI applications.”
TeraWulf to Focus on Enhancing Shareholder Value and Organic Growth
Speaking about the early debt repayment, TeraWulf chief financial officer Patrick Fleury hailed the high profitability of the company as the reason for the fast payment. Fleury further noted that now that the company has achieved a debt-free capital structure, its focus will be to tend to a growing demand for the firm’s highly valuable energy infrastructure. The executive also issued a forward-looking statement saying:
“Moving forward, we intend to remain steadfast in our commitment to enhancing shareholder value and allocate future profits towards organic growth, potential dividends, or share buybacks.”
Noticeably, TeraWulf appears not overly concerned about expansion through mergers and acquisitions at the moment. Rather, the company seems determined to provide sustainable shareholder returns by ways of increasing its profit margins and operational efficiency.
Mining Industry on The Edge
Following the halving event that took place in April, Bitcoin mining has never remained the same. That is because mining rewards were cut in half while the energy cost to mine Bitcoin (BTC) surged. Ever since then, the reality has been that mining firms must go hard or go home. That is, as those who can not compete in the new environment face the possibility of winding down.
As a fact, this possibility might be playing out already. That is because of the recent decline in the Bitcoin hashrate and the total computing power of the Bitcoin network. These figures suggest that miners are, at the moment, scaling back their operations or turning off old mining equipment.
