TeraWulf Dips 5% on $500M Capital Raise to Fund AI Data Center Expansion
TeraWulf plans to raise up to $575 million via convertible senior notes to fund its AI data center expansion.Summary
TeraWulf (WULF) announced plans to raise up to $575 million through a private sale of convertible senior notes, consisting of a base offering of $500 million due in 2032 with an option for an additional $75 million. This offering, limited to qualified institutional investors, caused the stock to dip 5% in premarket trading following a 17% surge the previous day. The proceeds are earmarked for funding a data center in Abernathy, Texas, which is part of a recently announced $9.5 billion joint venture with Fluidstack to build a 168-megawatt facility. Google (GOOG) is backing $1.3 billion of Fluidstack’s long-term lease obligations for the project. The convertible notes will not pay regular interest and can be converted into cash, stock, or a combination thereof upon maturity in May 2032.
(Source：CoinDesk)