TeraWulf Acquires Beowulf E&D to Bolster Vertical Integration
Deal News | May 27, 2025 | Globenewswire
TeraWulf Inc., a company focused on sustainable, next-generation digital infrastructure powered by zero-carbon energy, has announced the acquisition of all membership interests of Beowulf Electricity & Data LLC. This acquisition, valued at approximately $52.4 million, consists of $3 million in cash and 5 million shares of TeraWulf's common stock at closing, with potential additional payments based on future milestones. The strategic move aims to streamline TeraWulf's corporate structure, enhance transparency, and provide increased access to capital markets by eliminating related-party structures. The deal includes the transition of 94 employees from Beowulf E&D to TeraWulf, the termination of a costly services agreement, and aims to strengthen the company's vertical integration in power generation and energy expertise. Guided by its focus on environmental, social, and governance (ESG) principles, TeraWulf continues to leverage zero-carbon energy sources, including hydroelectric and nuclear power, to support its bitcoin mining and high-power compute operations.
Sectors
- Digital Infrastructure
- Renewable Energy
- Data Centers
- Bitcoin Mining
Geography
- United States – TeraWulf operates primarily in the United States, with its main facility located in Western New York.
Industry
- Digital Infrastructure – This sector relates to TeraWulf's focus on building and managing digital infrastructure facilities primarily for bitcoin mining and high-power computing workloads.
- Renewable Energy – The use of zero-carbon energy sources such as hydroelectric and nuclear power positions TeraWulf within the renewable energy industry.
- Data Centers – TeraWulf is involved in developing next-generation data center infrastructure, a critical component of its business operations.
- Bitcoin Mining – As TeraWulf's primary revenue source is bitcoin mining, this sector is central to their operations.
Financials
- $52.4 million – Total consideration for the acquisition including $3 million in cash and 5 million shares of TeraWulf common stock.
- $19 million – Potential contingent cash payments based on achieving future milestones.
- $13 million – Potential additional common stock based on achieving future milestones.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| TeraWulf Inc. | Acquiring Company | Company | A company focused on sustainable, next-generation digital infrastructure, primarily for bitcoin mining, using zero-carbon energy sources. |
| Beowulf Electricity & Data LLC | Target Company | Company | A company specializing in power generation assets and electrical infrastructure development, acquired by TeraWulf. |
| Reed Smith LLP | Legal Advisor | Company | Provided independent legal counsel to the Independent Committee in connection with the transaction. |
| Piper Sandler & Co. | Financial Advisor | Company | Provided a fairness opinion in connection with TeraWulf's acquisition of Beowulf E&D. |