TeraWulf raises $1 billion in convertible notes as greenshoe option exercised

EASTON, Md. - TeraWulf Inc. (NASDAQ:WULF), a digital infrastructure company with a market capitalization of $3.6 billion and impressive year-to-date returns of over 62%, announced Friday that initial purchasers of its 1.00% Convertible Senior Notes due 2031 have fully exercised their option to purchase an additional $150 million in notes, bringing the total offering to $1 billion.

The option exercise was completed on August 22, 2025, following the purchasers’ decision to exercise on August 21. The notes were sold through a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933. According to InvestingPro data, analysts anticipate sales growth of 44% for the current year.

In connection with the additional notes, TeraWulf entered into capped call transactions with a cap price of $18.76, representing a 100% premium over the company’s last reported common stock sale price.

Net proceeds from the offering totaled approximately $975.2 million after deducting discounts, commissions, and estimated expenses. The company allocated $100.6 million to fund the capped call transactions, with the remaining proceeds designated for data center expansion and general corporate purposes.

The digital infrastructure company, which describes itself as predominantly zero-carbon, operates vertically integrated facilities. This financing represents a significant capital raise for the company as it pursues growth in its data center operations.

The convertible notes offering and related information were disclosed in a press release statement from the company.

In other recent news, TeraWulf Inc. has seen significant developments with its financial and operational strategies. The company announced that Google has increased its financial support to approximately $3.2 billion, raising its equity stake in TeraWulf to about 14%. This expanded partnership is linked to a new CB-5 lease agreement at the Lake Mariner data center campus in Western New York. In conjunction with this, Fluidstack, an AI cloud platform, has expanded its lease, adding 160 megawatts of critical IT load, with operations expected to begin in the latter half of 2026.

Further highlighting TeraWulf’s growth, Rosenblatt Securities raised its stock price target to $12, maintaining a Buy rating, due to "transformational" high-performance computing agreements with Fluidstack and investment from Google. Similarly, Cantor Fitzgerald increased its price target for TeraWulf to $14, maintaining an Overweight rating, citing potential upside from the company’s current market capitalization. These developments underscore a period of strategic growth and expansion for TeraWulf, driven by significant partnerships and investments.

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