TeraWulf (WULF) plans to raise up to $575 million through a private sale of convertible senior notes, as it continues its focus from mining Bitcoin to powering artificial intelligence infrastructure.
The company announced plans Wednesday to sell $500 million of convertible senior notes due 2032, with the option for buyers to acquire an additional $75 million. The offer is limited to qualified institutional investors.
Shares are down 5% in premarket trading, following yesterday’s 17% rise.
Proceeds will help fund the construction of a data center in Abernathy, Texas. The move is likely part of a recently announced $9.5 billion joint venture with cloud computing company Fluidstack for the two companies to build a 168-megawatt data center on TeraWulf’s campus in Texas.
Google (GOOG) is backing $1.3 billion in long-term lease bonds from Fluidstack, giving the project’s lenders more confidence given the tech giant’s balance sheet.
Convertible notes will not pay regular interest and can be converted into cash, stock or a combination of both, depending on the company’s choices. The deadline is May 1, 2032.
Two months ago, the company also raised $850 million related to its data center expansion.
