TeraWulf Expands with $350M Capital and Share Repurchase Plan

TeraWulf Eyes Share Repurchase and AI Expansion with $350M Offering

TeraWulf plans to raise $350 million through convertible senior notes, aiming to boost its capital, support growth, and repurchase shares. The move highlights the company’s focus on expansion in zero-carbon Bitcoin mining and strengthening shareholder value

TeraWulf to Raise $350M in Convertible Notes for Share Repurchase

TeraWulf, a U.S.-based digital infrastructure company focusing on zero-carbon Bitcoin mining, has announced plans to raise $350 million through a private offering of convertible senior notes. 

These notes, maturing in 2030, will allow investors to convert their debt into shares of TeraWulf stock under certain conditions. The company aims to secure capital from institutional investors to strengthen its financial structure, enhance shareholder value, and support corporate initiatives.

Convertible Notes and Stock Repurchase Plans

The funds raised from this offering will be used for share repurchases, general corporate activities, and capped call transactions to limit stock dilution. Initial purchasers of the notes also have the option to buy an additional $75 million worth of notes within 13 days of issuance. TeraWulf expects to start paying interest on the notes in May 2025.

TeraWulf's Recent Moves and Growth Strategy

This announcement follows the company’s recent appointment of John Larkin as its new director of investor relations, signaling its intent to focus on growth and operational expansion. 

TeraWulf has been actively scaling its operations, including the launch of a new mining facility, the "WULF Den," which became operational in late September 2024. 

The company is also exploring a partnership with a major tech firm and has sold its 25% stake in the Nautilus Cryptomine for $92 million to purchase cheaper Bitcoin miners and expand into artificial intelligence and high-performance computing.

With its focus on environmentally friendly energy sources like nuclear and hydroelectric power, TeraWulf remains committed to its ESG principles, positioning itself for growth in a competitive digital infrastructure sector.

Conclusion

With strategic investments and a focus on eco-friendly mining, TeraWulf continues to grow despite a competitive market. The $350 million offering is a key step in its plan to expand operations and enhance its position in the digital infrastructure sector.