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 powering artificial intelligence infrastructure.
The company announced Wednesday that it plans to sell $500 million in convertible senior notes due 2032, with an option for buyers to buy an additional $75 million. The offering is limited to qualified institutional investors.
Shares are down 5% in premarket trading after yesterday’s 17% gain.
The profits will help finance 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 firm Fluidstack for both firms to build a 168-megawatt data center at TeraWulf’s Texas campus.
Google ( GOOG ) is backing $1.3 billion of Fluidstack’s long-term lease obligations, giving the project’s lenders more confidence given the tech giant’s balance sheet.
The convertible notes do not pay regular interest and can be converted into cash, shares or a combination of both, depending on the company’s choice. The term is set to 1 May 2032.
The company similarly raised $850 million two months ago in connection with its data center expansion.
