TeraWulf Announces $850 Million Convertible Note Sale for Expansion
TeraWulf (WULF) adjusted its convertible note sale to $850 million, pricing the offering to fund data center expansion.
- The notes mature in 2031 with a 1% annual interest.
- Initial conversion price is $12.43 per share, a 32.5% premium over last week's close.
- Net proceeds are estimated at $828.7 million, with $85.5 million for capped call transactions to limit share dilution.
- Buyers have a 13-day option to add $150 million to the deal, expected to close this week.
- After a nearly 100% rally, WULF fell 5% below $9 from a high of $10.7 following a deal with Fluidstack.
- FluidStack will expand operations at TeraWulf’s New York campus under a 10-year hosting agreement, supported by Google’s increased debt backing.
- Google now holds warrants representing a 14% equity stake in TeraWulf.