TeraWulf ( WULF ), a US data center operator focused on bitcoin mining and AI computing, saw its shares fall early Wednesday after the company announced a $900 million capital raise.
The firm priced 47.4 million shares at $19 each. WULF is down 5.8% to $19.73 in early trading. The underwriter greenshoe option is for an additional 7 million shares.
Alongside other AI infrastructure names, WULF has been on a fiery run, rising more than 50% since the end of March.
The proceeds are earmarked to fund the construction of a major data center campus in Hawesville, Kentucky, along with repayment of outstanding bridge financing and support for future expansion.
Preliminary results for the 1st quarter
Alongside the offering, TeraWulf released preliminary results for the first quarter of 2026. The company expects revenue of between $30 million and $35 million. The balance sheet showed $3.1 billion in cash and $5.8 billion in total debt.
Management highlighted a growing shift toward contracted HPC hosting revenue, which now accounts for over half of total revenue, positioning the company for more stable, long-term cash flows.
Compass Point analyst Michael Donovan, who has a buy rating and a $28 price target on WULF, pointed to the shift in the mix toward HPC as a positive pivot for the company, with contract hosting revenue overtaking bitcoin mining for the first time. He also sees the capital raising as a necessary step to unlock the next phase of growth. While acknowledging the dilution, he said the added funding improves visibility in the build-out of the Kentucky location, which he expects to be developed in phases based on customer demand. He added that demand for TeraWulf’s power and hosting capacity remains strong.
Looking ahead, Donovan expects the company’s revenue profile to change meaningfully as HPC scales. He predicts that contracted hosting will become the dominant driver of revenue over the next two years, reducing dependence on bitcoin price fluctuations and supporting a more predictable revenue stream.
The shift reflects a broader trend across the industry as bitcoin miners increasingly turn to artificial intelligence and high-performance computing infrastructure to diversify revenue streams and improve margins.
