TeraWulf Plans $575 Million Capital Raise for AI Data Center
- TeraWulf aims to raise $500 million through a private sale of convertible senior notes due May 1, 2032.
- An additional $75 million may be raised, with the offering limited to qualified institutional investors.
- Proceeds will fund a data center in Abernathy, Texas, as part of a $9.5 billion joint venture with Fluidstack.
- Google is backing $1.3 billion of Fluidstack’s lease obligations to support the project.
- The convertible notes will not pay regular interest and can be converted into cash or stock.
This capital raise reflects TeraWulf’s strategic shift from bitcoin mining to enhancing artificial intelligence infrastructure through cloud computing capabilities.
With plans to raise up to $575 million, TeraWulf’s focus on AI data centers marks a significant pivot in its business strategy following an earlier $850 million funding round for expansion efforts.(Source)
