Bitcoin mining company TeraWulf expresses openness to merging with no intention of pursuing excessive expansion

TeraWulf, a Bitcoin mining firm, 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.” In an interview with Cointelegraph, Langlais stated that TeraWulf focuses more on “organic growth” at its existing sites and prioritizes shareholder returns. The discussion about potential mergers and acquisitions in the mining sector has arisen following the recent Bitcoin halving. Langlais expects to see more offers in this space but highlights the challenge of determining which deals are worth pursuing due to disparities in valuations. He suggests that Bitcoin miners should shift their focus from enterprise value and hashrate to profitability and EBITDA, similar to traditional commodities businesses. TeraWulf has diversified its revenue streams by venturing into AI and high-performance computing. However, expansion for Bitcoin miners may pose challenges due to increasing competition for sites and power resources. Langlais explains that the competition from hyperscalers is driving up land and power prices, thereby reducing the profitability of new mining projects. The profitability margins have become a major concern for the industry since the fourth halving event, which resulted in a 50% reduction in the block subsidy. Despite this, TeraWulf remains profitable as long as Bitcoin’s price stays above $40,000.