TeraWulf upsizes private offering to $900 million to fund Texas data center expansion
Quick Take Bitcoin miner TeraWulf has upsized its private offering of 0% convertible senior notes due 2032 to $900 million, with a $125 million greenshoe. Several other BTC miners are raising debt and pivoting to AI/HPC data centers, including Core Scientific, Bitdeer, CleanSpark, and Iris Energy.
TeraWulf Inc. (ticker WULF) now plans to raise $900 million from privately offered convertible senior notes due 2032 as the firm pivots from core bitcoin mining operations to building artificial intelligence data facilities.
The upsized print follows TeraWulf’s earlier proposed $500 million offering, disclosed on Wednesday, per The Block’s prior coverage . Initial purchasers now have a 13-day option to buy up to an additional $125 million. Additionally, a company statement said the zero-coupon notes carry a 37.5% conversion premium to Wednesday’s $14.50 close, implying an initial conversion price of $19.9375 per share.
According to the investor update, the notes are senior unsecured, payable in cash for principal upon conversion, with any excess settled in cash, stock, or a mix at the company’s election. Proceeds — about $877.6 million net or $999.7 million if the greenshoe is fully exercised — are earmarked to fund construction of TeraWulf’s Abernathy, Texas data-center campus and for general corporate purposes.
Across the sector, bitcoin miners are retooling for AI/HPC and tapping capital markets to fund plans. Analysts at JPMorgan say listed bitcoin miners are increasingly “decoupling” from the price of bitcoin as they pivot toward AI-related infrastructure. The bank’s team, led by managing director Nikolaos Panigirtzoglou, wrote that miners once viewed as simple bitcoin proxies are now being re-rated based on AI exposure and computing margins, a shift that puts firms like TeraWulf squarely in focus.
Furthermore, Core Scientific has deepened ties with CoreWeave, signing a 200 MW AI-capacity deal and a 2025 acquisition proposal. Also, Bitdeer has advanced its in-house AI development, while CleanSpark has shared data center plans to pursue AI conversions, and Iris Energy has scaled GPU-backed AI cloud services.
Meanwhile, Marathon has used zero-coupon converts to buy bitcoin and restructure its debt, maintaining its core BTC focus while pursuing a corporate treasury strategy.
This week’s proposed raise extends TeraWulf’s aggressive financing and AI pivot. Earlier this month, the company announced a $9.5 billion Google-backed joint venture with Fluidstack, tied to long-dated AI compute hosting.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners
Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.
If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.
The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends
Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%
For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.
Crypto prices
More
