TeraWulf subsidiary plans $3.2 billion senior secured notes offering

TeraWulf Inc. (NASDAQ:WULF), currently trading near its 52-week high with a market capitalization of $6.3 billion, announced Tuesday that its wholly owned indirect subsidiary, WULF Compute LLC, intends to offer $3.2 billion aggregate principal amount of senior secured notes due 2030. The planned offering was disclosed in a statement included with a regulatory filing.

According to the press release statement, the company also provided updated risk factors related to the proposed offering. These risk factors were made available as an exhibit to the filing. InvestingPro data shows the company operates with a moderate level of debt and has a current ratio of 0.66, indicating potential liquidity challenges.

The company stated that the information regarding the offering and associated risk factors was furnished in connection with the planned transaction and is not considered filed for purposes of Section 18 of the Securities Exchange Act of 1934.

TeraWulf’s common stock is listed on the Nasdaq Capital Market under the symbol WULF. The announcement was signed by Chief Financial Officer Patrick A. Fleury.

All information is based on a statement included in a filing with the Securities and Exchange Commission.

In other recent news, TeraWulf Inc. announced its subsidiary, WULF Compute LLC, plans to offer $3.2 billion in senior secured notes to fund the expansion of its data center at the Lake Mariner campus in New York. Additionally, TeraWulf is looking to raise approximately $3 billion for further data center expansion, with support from Google, as coordinated by Morgan Stanley. Shareholders of TeraWulf have also approved an increase in authorized common stock from 600 million to 950 million shares. In analyst updates, Rosenblatt has raised its price target for TeraWulf to $14.50 from $12, maintaining a Buy rating, citing increased demand for high-performance computing driven by artificial intelligence. These developments highlight TeraWulf’s strategic moves to enhance its infrastructure and capitalize on emerging technological demands.

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