TeraWulf expands fundraising to $900 million to support AI data center development

Techub News reports that, according to The Block, Bitcoin mining company TeraWulf announced an increase in its common stock offering size to $900 million to support AI data center construction. According to the statement, the company issued 47.4 million shares at a price of $19 per share on April 14. The offering size was expanded from the initial $800 million target, with underwriters holding a 30-day option to purchase an additional 7.11 million shares at the offering price. Morgan Stanley served as co-bookrunner for the offering, and Cantor Fitzgerald acted as equity capital markets advisor. TeraWulf stated that the net proceeds from this offering will be used to fund the construction of its data center campus planned in Housville, Kentucky, including fully repaying the outstanding amount under its bridge credit facility. The offering is expected to close on April 16.

Additionally, the company announced preliminary results for the first quarter ending March 31. TeraWulf expects revenue between $30 million and $35 million, with adjusted EBITDA reaching up to $3 million. The company stated that as of March 31, it held $3.1 billion in cash, cash equivalents, and restricted cash, while total debt was $5.8 billion. The debt includes $2.5 billion in convertible notes held by TeraWulf, $3.2 billion in senior secured notes held by WULF Compute LLC, and a $100 million deferred drawbridge loan held by its Kentucky subsidiary.