Terawulf’s (Wulf) Breakneck Rally is cooled on Tuesday as the company increased its convertible note sale to $ 850 million and announced the pricing of the offer aimed at funding its data center extension.
The notes mature in 2031 with 1% annual interest rate and will be interchangeable to cash, stocks or both in Terawulf’s elections, the company said in a press release on Monday. The original conversion price is set at $ 12.43 per Share, which represents a 32.5% premium to last week’s end.
Net proceeds are estimated at $ 828.7 million and is earmarked for expansion of data center with $ 85.5 million earmarked for covered call transactions designed to limit the dilution of the share, the company said. Buyers have a 13-day opportunity to add additional $ 150 million to the deal, which is expected to close this week.
Wulf dropped 5% under $ 9 and withdrew from Monday’s $ 10.7 high after a nearly 100% rally after a Thursday deal with AI Cloud Platform Fluidtack, which is backed by the tech giant Google.
According to a 10-year hosting agreement, Fluidtack will expand the operations at Terawulfs Lake Mariner-Campus in New York, supported by Google’s $ 1.4 billion increase for its debt support for the project. Google now has warrants representing a 14% equity share in the company.
Read more: Terawulf adds an additional 10%when Google lifts the proportion
