Oct 3 (Reuters) - U.S. utility firm Talen Energy said on Thursday it has bought TeraWulf's minority stake in a 200-megawatt (MW) bitcoin mining facility in Pennsylvania.

The deal is for a total consideration of $85 million in cash and some physical assets used in bitcoin mining operations.

TeraWulf's shares fell about 3.8% after the bell.

Talen now has complete ownership in the Nautilus facility, which has the capacity to power about 160,000 homes and is the first digital coin mining operation directly supplied with on-site nuclear energy.

Earlier this year, Reuters had reported that Talen was looking to offload its stake in the Nautilus facility, in a process marketed to both data center developers and cryptominers.

"(The deal) provides us with increased flexibility as we explore strategic alternatives in order to maximize the value per megawatt for our Susquehanna nuclear generation facility," Talen said in a statement.

Operated by Talen, the Susquehanna nuclear plant is located right next to a 900 MW data center campus which it sold to e-commerce giant Amazon , earlier this year.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Shailesh Kuber)

((Srivastava.Vallari@thomsonreuters.com;))