TeraWulf’s compute unit plans $3.2 billion notes offering for data center

NEW YORK - TeraWulf Inc.’s (NASDAQ:WULF) wholly-owned subsidiary, WULF Compute LLC, announced Tuesday its intention to offer $3.2 billion in senior secured notes due 2030 to qualified institutional buyers under Rule 144A of the Securities Act. The announcement comes as TeraWulf, currently valued at $5.7 billion, trades near its 52-week high with a remarkable 467% return over the past six months, according to InvestingPro data.

According to the company’s press release, proceeds from the private offering will finance a portion of WULF Compute’s data center expansion at its Lake Mariner campus in Barker, New York. The expansion plans come as TeraWulf shows strong revenue growth potential, with analysts forecasting 46% growth for the current fiscal year. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 14 additional exclusive insights available to subscribers.

The notes will be guaranteed by WULF Compute’s subsidiaries and secured by first-priority liens on substantially all assets of WULF Compute and its guarantors, along with other specified collateral including a pledge by Google LLC of warrants to purchase TeraWulf common stock prior to the expansion’s completion.

TeraWulf will provide completion guarantees for the data center expansion, committing to fund WULF Compute as needed to ensure timely completion of the project.

Morgan Stanley is serving as the sole bookrunner for the notes offering, which remains subject to market conditions and other factors.

The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

TeraWulf develops and operates environmentally sustainable data center infrastructure in the United States designed for high-performance computing and other compute-intensive applications. The company operates with a debt-to-equity ratio of 3.03 and maintains a beta of 4.28, indicating significant stock price volatility. For comprehensive analysis of TeraWulf and 1,400+ other stocks, including detailed Fair Value assessments and expert insights, visit InvestingPro.

The company noted that the offering’s completion, timing, and size are not guaranteed, as stated in its forward-looking statements disclaimer.

In other recent news, TeraWulf Inc. has seen a series of notable developments. The company announced that its shareholders approved an amendment to increase the maximum number of authorized shares of common stock from 600 million to 950 million. This decision was made at a special meeting, with a significant majority voting in favor. Additionally, TeraWulf is planning a substantial $3 billion expansion of its data centers, supported by Google, with Morgan Stanley coordinating the potential transaction. In a separate update, Rosenblatt raised its price target for TeraWulf to $14.50 from $12.00, maintaining a Buy rating, citing the growing demand for high-performance computing driven by artificial intelligence. Meanwhile, Bitcoin-linked stocks, including those of TeraWulf, experienced declines amid fluctuating cryptocurrency prices and rising U.S.-China trade tensions. Despite these market challenges, the company’s strategic moves and analyst support highlight its ongoing efforts to adapt and grow in a dynamic environment. These recent developments are crucial for investors to consider.

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