Yahya 
Chief strategist of Bitcoin mining company TeraWulf said it would think about a merger if there is a chance to increase profit margins; however, not if it is just for “empire building.”
Focus on Profitability Over Expansion
TeraWulf’s chief strategy officer Kerri Langlais underlined a cautious approach to mergers and acquisitions (M&A) amid anticipation of additional mergers and acquisition approaches in the mining business after the last Bitcoin halving. “We will definitely consider inorganic growth opportunities through M&A [but] expanding merely for growth’s sake, or ’empire building,’ without considering profitability makes no sense” Langlais said.
While other publicly traded Bitcoin miners have established objectives to meet hashrate milestones, Langlais said TeraWulf is more concerned with “organic growth” at its current locations and shareholder returns. Langlais noted, “Our success depends not only on the rate of our growth but also on the careful distribution of capital to produce consistent returns for our owners.”
Shifting Valuation Metrics in the Mining Sector
Talks of upcoming Bitcoin miner M&A activity emerged when Riot Platforms tried a “hostile” acquisition of Bitfarms with a $950 million buyout bid in June, which finally fell short. Still, Riot was able to get a 14.9% share in Bitfarms. On June 27 CleanSpark, a bitcoin miner, also revealed a $155 million merger with GRIID Infrastructure.
Langlais observes a significant “disparity in valuations,” which makes it challenging to decide which acquisitions are worth investigating even if she anticipates more Bitcoin miner M&A proposals. Langlais would like a change toward profitability and EBITDA — profits before interest, taxes, depreciation, and amortization — like typical commodities firms, whereas Bitcoin miners are valued now based on their enterprise value compared to revenue and hashrate. “Cash is king,” and going ahead mining companies should value indicators like EBITDA, profitability, and free cash flow.
One of numerous Bitcoin miners, TeraWulf has transferred part of its capacity to other businesses like artificial intelligence and high-performance computers, therefore diversifying income sources. Langlais said growing competition for locations and electrical supplies might present significant challenges for Bitcoin miners trying to expand. “Hyperscalers are rapidly securing every available power capacity nationwide, competing for the same sites typically sought after by BTC miners,” Langlais stated. “This fierce rivalry is driving up land and electricity prices, so reducing the profitability of newly proposed BTC mining operations.”
After the fourth halving event saw the block subsidy reduced by 50% to 3.125 BTC — worth $174,100 — profitability margins have become an industry focus point. Langlais said TeraWulf, which mines most of its Bitcoin using nuclear energy, would remain profitable providing the price of Bitcoin remains over $40,000.
Right now, Bitcoin is trading at $55,314; down 4.04% over the last 24 hours and 19.6% over the past month.
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