TeraWulf Raising $500M Through Convertible Debt
TeraWulf plans to raise up to $575 million via a private sale of convertible senior notes to fund the expansion of its data center in Texas. Aiming to shift focus from bitcoin mining to artificial intelligence infrastructure, the company will sell $500 million in notes due 2032, with an additional $75 million option for buyers. This initiative is part of a $9.5 billion joint venture with Fluidstack to build a 168-megawatt data center, supported by Google’s commitment of $1.3 billion to Fluidstack's lease obligations. Despite a 17% stock surge following the announcement, TeraWulf shares dipped 5% in premarket trading. The convertible notes will not pay regular interest and will mature on May 1, 2032, giving investors the option to convert them into cash, stock, or a mix of both. The proceeds from this capital raise aim to bolster TeraWulf's new business trajectory as it aligns operations with the increasing demands of AI technologies.
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