Key Takeaways:
- Gwyneth Paltrow invests in green bitcoin miner TeraWulf.
- TeraWulf is a startup that intends to create Bitcoin using renewable energy, answering concerns about the cryptocurrency’s high electricity use.
- With her investment in a green Bitcoin mining startup TeraWulf, Paltrow is thinking about another important issue for the crypto industry: environmental sustainability.
- TeraWulf is alerting the S.E.C. today to conclude a reverse merger with Ikonics.
Gwyneth Paltrow is one of several investors in TeraWulf, a green bitcoin miner that recently announced a $200 million debt and equity investment round (NASDAQ:IKNX).
Gwyneth Paltrow published a Bitcoin primer in 2018, produced a podcast episode about crypto trading this summer season, and Paltrow keeps up with the expertise in what she refers to as a monthly blockchain “tutoring name.” Now she’s thinking about another big issue in the crypto world: environmental sustainability, and she’s investing in an inexperienced Bitcoin mining company.
The company intends to provide Bitcoin using renewable energy, answering objections about the cryptocurrency’s high energy use. In addition, Terawulf received a “substantial, 8-digit equity investment” from Paltrow, Moj Mahdara, and a group of investors, executives, and entrepreneurs. Mindy Kaling and Lilly Singh, entrepreneur and investor Kimberly A. Blackwell, and Ronnie Fieg, the CEO and creator of KITH, are among the organization members.
TeraWulf just raised $200 million, with some of it coming from Paltrow and her friends, including comedians Mindy Kaling and Lilly Singh.
The financing consists of a three-year senior secured term loan worth $123.5 million and subscription agreements with investors worth $76.5 million to acquire newly issued shares of the company’s common stock.
For TeraWulf’s debt and equity financing, investment firm Moelis served as the exclusive placement agent.
TeraWulf was founded to own and operate fully integrated, environmentally friendly bitcoin mining operations in the United States. TeraWulf will use nuclear, hydro, and solar energy to produce bitcoin in the United States.
TeraWulf announced in June that it will merge with Ikonics (IKNX), a Nasdaq-listed company, to become public and trade under the ticker “WULF.” According to the miner, the agreement was scheduled to be completed during the week of December 13.
Terawulf, which seeks to mine bitcoin using nuclear, hydro, and solar energy, is poised to begin trading under the ticker “WULF” tomorrow after executing a reverse merger with IKONICS (IKNX). TeraWulf joins Core Scientific (NASDAQ:XPDI), Grid Infrastructure (NYSE:ADEX), and Bitdeer Technologies as bitcoin miners that have gone public or announced SPAC deals to go public this year (NASDAQ:BSGA).
TeraWulf is alerting the Securities and Exchange Commission that it has completed a reverse merger with Ikonics, a publicly-traded photo-imaging company whose shareholders approved the transaction on Friday. It plans to begin buying and selling under the ticker symbol. In premarket trade, WULF, Ikonics (IKNX) surged 8.8%.
FIGS Co CEO & Co-Founder Trina Spear, entrepreneur Sara Foster, IT executive and advisor Pegah Ebrahimi, NFT & streetwear entrepreneur Bobby Kim, and TikTok’s Head of Global Marketing Nick Tran are among the other investors with Paltrow.
After briefly allowing Bitcoin funds, Tesla’s CEO declared in May that the company would no longer accept them, citing the environmental costs of Bitcoin mining. Paltrow was introduced to TeraWulf as she was undertaking her analysis at the time. The company claims it can help towns switch to wind, solar, or hydro energy and turn these variable energy sources into an asset with long-term value.
