TeraWulf Raises $500M Convertible Notes for Texas AI Data Center
TeraWulf has launched a private offering of $500 million zero-interest convertible senior notes due May 1, 2032, plus a $75 million over-allotment option under Rule 144A. These convertible notes target qualified institutional buyers and feature a zero-coupon structure.
Proceeds will fund a 168 MW Abernathy, Texas data center campus to support Bitcoin mining and high-performance computing for AI, as part of a $9.5 billion JV with Fluidstack backed by a $1.3 billion Google lease. Notes convert into cash or equity under set conditions before Feb 1, 2032, or at any time before maturity, offering upside linked to TeraWulf’s share performance. The company’s stock rose 29% over the past month but recently dipped amid market reactions. CEO Paul Prager said the deal marks a strategic pivot from pure Bitcoin mining to diversified AI infrastructure. Traders should watch pricing, conversion terms and market response to gauge long-term impact.
Bullish
The convertible notes offering indicates strong institutional backing and provides funding for TeraWulf’s strategic expansion into AI infrastructure alongside its Bitcoin mining operations. The zero-coupon structure preserves cash flow, while the conversion feature aligns investor interests with future share performance. Partnership with Fluidstack and Google’s $1.3B lease adds credibility and long-term contracted revenue visibility. Although equity dilution and near-term volatility are possible, the deal enhances growth prospects, suggesting a bullish outlook for BTC exposure via TeraWulf’s integrated crypto and AI facility development.