Mining Companies Lease Data Centers Amid Bitcoin Profitability Decline

Bitcoin (BTC) mining company Terawulf is leasing a 70-megawatt (MW) data center. This move is interpreted as a response to the decline in Bitcoin profitability.

According to Cointelegraph on the 24th, Terawulf recently signed a 70MW data center lease agreement with AI and cloud service company Core42. Located in northern New York, the data center will be gradually operational starting from the first quarter of next year.

Terawulf's decision to enter the data center leasing business is due to the deterioration in Bitcoin profitability. The announcement of the data center lease agreement coincided with a nearly 12% drop in Terawulf's stock price in a single day. Terawulf stated, "(The data center lease) is a strategic expansion into AI-based computing business to complement the profitability of the Bitcoin mining business."

Paul Prager, CEO of Terawulf, also expressed optimism about business diversification. Prager stated, "This agreement will diversify (Terawulf's) revenue streams and significantly enhance long-term profitability."