TeraWulf Eyeing $500M Raise from Convertible Note Offering to Fund AI Data Centre Expansion

Quick take:

• The convertible senior notes are to mature on May 1, 2032, unless earlier repurchased, redeemed, or converted in accordance with their terms.
• They will not bear regular interest, and the principal amount of the Notes will not accrete. 
• Initial purchasers of the Notes will be given an option to purchase, within 13 days, up to an additional $75 million aggregate principal amount of the Convertible Notes, bringing the total raised to $575 million.

TeraWulf, Inc. (NASDAQ: WULF), a low-carbon digital infrastructure company that offers industrial-scale data center infrastructure for high-performance computing hosting and bitcoin mining, has announced that it intends to issue $500 million convertible senior notes to fund the expansion of its AI data center.

The Notes will not bear regular interest, and the principal amount of the Notes will not accrete, the company said.

According to the press release seen by NFTgators, the Notes are set to mature on May 1, 2032, unless earlier repurchased, redeemed, or converted in accordance with their terms. The company is also giving the initial purchasers of the Senior Notes an option to purchase, within 13 days, up to an additional $75 million aggregate principal amount of the Convertible Notes, bringing the total raised to $575 million.

TeraWulf plans to use the proceeds from the offering to fund a portion of the cost of construction of a data center campus in Abernathy, Texas, and for general-purpose operations.

The offering is subject to market and other conditions, with no assurances on when it will be completed.

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