TeraWulf to raise $500M via convertible notes for Abernathy campus

TeraWulf said on Wednesday it will seek to raise $500 million through a private sale of convertible senior notes to help finance construction of a new data center campus in Abernathy, Texas, with an option for underwriters to buy an additional $75 million. The Nasdaq-listed bitcoin miner said the notes, offered to qualified institutional buyers, will mature on May 1, 2032, will not pay regular interest and may be converted into cash, TeraWulf common stock, or a combination of both under terms to be finalized at pricing. The company said net proceeds will fund the Texas data center project and other corporate purposes.

The offering follows a string of deals that signal TeraWulf is shifting some focus from pure cryptocurrency mining toward hosting AI and high-performance computing workloads. The company and AI cloud provider Fluidstack plan to jointly develop a roughly 168 to 170 megawatt data center on TeraWulf’s Texas campus under a long-term hosting arrangement that the companies have described as spanning multiple decades and amounting to billions in total contract revenue. TeraWulf has said it expects the first phase of the buildout to be completed in 2026.