Gwyneth Paltrow invests in bitcoin miner TeraWulf
Academy Award-winning actress and Goop founder Gwyneth Paltrow recently participated in a $200 million debt and equity financing round for TeraWulf, a crypto mining company that aims to produce Bitcoin using 100% zero-carbon energy, such as nuclear, hydroelectric or solar power.
As part of the financing round, Paltrow, Beautycon Media CEO Moj Mahdara and a group of highly influential investors, executives and entrepreneurs have made a substantial, 8-digit equity investment in TeraWulf.
The group includes actresses and comedians Mindy Kaling and Lilly Singh, entrepreneur, KITH CEO and founder Ronnie Fieg, FIGS co-CEO and co-founder Trina Spear and TikTok Head of Global Marketing Nick Tran.
Prior to Paltrow’s latest investment, Goop published a blog post in 2018 titled “The Basics of Bitcoin and Cryptocurrency—and How to Invest” and released a podcast episode in August focusing on cryptocurrency investing.
VISA LAUNCHING CRYPTO ADVISORY SERVICE TO HELP FINANCIAL INSTITUTIONS, RETAILERS NAVIGATE SECTOR
The company previously announced plans to go public through a business combination with IKONICS corporation, which is expected to close this week. The combined company’s shares will trade on the Nasdaq under the ticker symbol WULF.
As part of its debt and equity financing, TeraWulf entered into an approximately $123.5 million three-year senior secured term loan and issued newly issued shares of common stock to the lenders. According to a Nov. 10 filing, TeraWulf has an estimated enterprise value of $2.7 billion.
“TeraWulf’s ability to raise private capital underscores the attractiveness of bringing a new paradigm for cryptocurrency mining to the public markets,” TeraWulf chairman and CEO Paul Prager said in a news release. “Due to our seasoned team’s energy infrastructure expertise, we expect to be able to quickly deploy capital as we build a mining operation bigger than any other currently public bitcoin mining company and maintain attractive bitcoin mining economics.”
CLICK HERE TO READ MORE ON FOX BUSINESS
The emergence of TeraWulf comes as the world’s largest cryptocurrency has faced criticism for its potentially harmful environmental impact due to its massive energy consumption, including from Tesla CEO Elon Musk.
Miners and cryptocurrency executives agreed to form the Bitcoin Mining Council in May to accelerate sustainability efforts in the space, which TeraWulf joined in July. However, critics have said the group is an “attack on Bitcoin” that will drive mining costs higher and amount to a bigger waste of energy.
Bitcoin is down Monday as of the time of publication, trading above $47,000 per coin.