Terawulf (Wulf) plans to raise up to $ 575 million through a private sale of convertible senior notes, as it continues to shift its focus from Bitcoin mining to the power of artificial intelligence infrastructure.
The company Wednesday announced It plans to sell $500 million in convertible senior notes due in 2032, with an option for buyers to put up an additional $75 million. The offer is limited to qualified institutional investors.
Shares were down 5% in Premarket Trading, following yesterday’s 17% advance.
Proceeds will help fund the construction of a data center in Abernathy, Texas. Migration is likely part of a Recently announced $ 9.5 billion Joint venture with cloud compute firm fluidstack for both companies to build a 168-megawatt data center on Terawulf’s Texas campus.
Google (GOOG) is backing $1.3 billion of FluidStack’s long-term lease obligations, giving lenders more confidence in the project given the tech giant’s balance sheet.
Convertible notes do not pay regular interest and can be converted into cash, stock, or a combination of both, depending on the company’s election. Maturity is set for May 1, 2032.
The company two months ago Similarly raised $ 850 million tied to its data center expansion.
