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EASTON, Md. - TeraWulf Inc. (NASDAQ:WULF) today completed its previously announced offering of 0.00% Convertible Senior Notes due 2032, raising $1.025 billion in a private placement to qualified institutional buyers under Rule 144A. The bitcoin mining company, currently valued at $6.28 billion, has seen its stock surge over 421% in the past six months.
The offering included $125 million in additional notes issued through an option granted to the initial purchasers. After deducting discounts, commissions, and estimated expenses, TeraWulf received approximately $999.7 million in net proceeds.
The company plans to use the funds primarily to finance construction of a data center campus in Abernathy, Texas, with the remainder allocated for general corporate purposes.
The zero-interest convertible notes mature in 2032, though specific conversion terms were not detailed in the announcement.
TeraWulf describes itself as an owner and operator of vertically integrated, low-carbon digital infrastructure in the United States, with facilities designed for high-performance computing hosting and bitcoin mining.
The company’s statement indicated it aims to deliver scalable, low-carbon compute capacity for artificial intelligence and high-performance computing customers.
This announcement comes as data center infrastructure continues to expand nationwide to meet growing demands from AI applications and digital asset operations.
The information in this article is based on a press release statement from TeraWulf.
In other recent news, TeraWulf Inc. has announced its plan to offer $500 million in convertible senior notes due 2032 through a private placement to qualified institutional buyers. This move comes as part of the company’s strategy to strengthen its financial position. Meanwhile, TeraWulf has been involved in a significant joint venture with Fluidstack, focusing on high-performance computing (HPC), which has led Rosenblatt to raise its price target for the company to $24.00 from $20.00, maintaining a Buy rating. Similarly, Needham has increased its price target to $21.00 from $11.00, also retaining a Buy rating, citing confidence in TeraWulf’s power capacity sourcing capabilities.
Compass Point has reiterated its Neutral rating on TeraWulf with a $17.00 price target, following the company’s announcement of a 25-year joint venture with Fluidstack for a critical IT load project in Texas. This project is supported by a $1.3 billion Google lease backstop. Additionally, Oppenheimer has initiated coverage on TeraWulf with an Outperform rating and a $20.00 price target, highlighting the company’s pivot towards AI infrastructure as a positive development. These recent developments indicate a strategic shift for TeraWulf as it expands its operations and partnerships in the digital infrastructure space.
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