TeraWulf, the well-known Bitcoin mining company, announced a key strategic move this Wednesday. It plans a private offering of $500 million in senior convertible notes. These instruments will be due in the year 2032. The main goal is to finance the TeraWulf AI data center expansion in Texas. This information was revealed through an official statement issued by the company.
The financial operation is meticulously designed. The offering is aimed exclusively at persons reasonably believed to be qualified institutional buyers, under Rule 144A of the Securities Act. These initial purchasers will also enjoy an additional option. They can acquire up to an extra $75 million in notes. This option will be available for a 13-day period from issuance.
The raised funds have a very specific destination. TeraWulf will use the capital to fund part of the construction costs for its new campus. This data center will be located in Abernathy, Texas. This project represents one of the firm’s largest expansions in US territory. Furthermore, it complements its current low-carbon mining operations. It also supports its high-performance computing (HPC) initiatives in New York and Pennsylvania.
TeraWulf detailed the conditions of the financial instruments. The notes will be senior unsecured obligations of the firm. A relevant point is that they will carry zero interest. The principal amount of the notes will not change. Their maturity is set for May 1, 2032. This applies unless they are repurchased, redeemed, or converted before that date. Conversion, however, will only occur under certain specific conditions.
Will this bet on AI transform TeraWulf’s market profile?
This strategy underscores a clear transition. TeraWulf is evolving from pure BTC mining toward AI-driven HPC infrastructure. This move is not an isolated event. It adds to an aggressive financing streak throughout 2025. The market for AI infrastructure is experiencing a notable boom.
In fact, this financing follows another major announcement. Earlier in the month, TeraWulf reported a partnership with Fluidstack, an entity backed by Google. That joint project seeks to develop 168 MW of next-generation AI compute capacity. According to the miner, that deal represents $9.5 billion in contracted revenue. Paul Prager, CEO of TeraWulf, celebrated the “deepening strategic alignment with Fluidstack and Google.”
The short-term market reaction was mixed. Following the notes announcement, WULF shares fell 6.8% in the last 24 hours, trading at $14.90. Despite this daily dip, the overall outlook remains strong. The stock has risen 16.6% in the last five days. Furthermore, it has accumulated an impressive 29% gain in the past month.
This TeraWulf AI data center expansion is fundamental. It positions the firm as a key player in a booming sector. Many Bitcoin mining companies are looking to diversify their revenue streams. Infrastructure for artificial intelligence is seen as the next great frontier. TeraWulf is taking decisive steps to lead that transition.
