TeraWulf (WULF) is set to raise up to $575 million through a private offering of convertible senior notes, as it pivots from bitcoin mining to supporting artificial intelligence infrastructure.
The company announced on Wednesday that it plans to issue $500 million in convertible senior notes due in 2032, with an option for purchasers to add another $75 million. This offering is restricted to qualified institutional investors.
Shares fell 5% in premarket trading after a 17% increase the previous day.
The funds will be used to develop a data center in Abernathy, Texas. This initiative is expected to be part of a recently unveiled $9.5 billion partnership with cloud computing company Fluidstack to construct a 168-megawatt data center at TeraWulf’s Texas location.
Google (GOOG) is supporting $1.3 billion of Fluidstack’s long-term lease obligations, providing lenders with additional assurance due to the tech giant’s financial stability.
The convertible notes will not offer regular interest payments and can be converted into cash, stock, or a mixture of both, based on the company’s discretion. The maturity date is set for May 1, 2032.
Two months ago, the company similarly secured $850 million linked to its data center expansion.
