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TeraWulf Rally Cools on $850M Convertible Note Sale After Google Deal
Most of the net proceeds are earmarked for the firm's data center expansion, with $85 million set aside for capped call transactions to mitigate share dilution.
Aug 19, 2025, 3:01 p.m.
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What to know:
- TeraWulf increased its convertible note offering to $850 million to fund data center expansion, with notes maturing in 2031 and a 1% annual interest rate.
- Shares dropped 5% following the announcement, paring gains after a massive three-day surge on striking an AI hosting deal with FluidStack backed by Google.
TeraWulf's (WULF) breakneck rally cooled on Tuesday as the firm increased its convertible note sale to $850 million and announced the pricing of the offering, aimed at funding its data center expansion.
The notes will mature in 2031 with 1% annual interest, and will be exchangeable into cash, stock or both at TeraWulf’s election, the company said in a Monday press release. Initial conversion price is set at $12.43 per share, representing a 32.5% premium to last week’s close.
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Net proceeds are estimated at $828.7 million, and are earmarked for data center expansion with $85.5 million earmarked for capped call transactions designed to limit share dilution, the firm said. Buyers have a 13-day option to add another $150 million to the deal, which is expected to close this week.
WULF fell 5% below $9, pulling back from Monday's $10.7 high after an almost 100% rally following a Thursday deal with AI cloud platform Fluidstack, which is backed by tech giant Google.
Under a 10-year hosting agreement, FluidStack will expand operations at TeraWulf’s Lake Mariner campus in New York, backed by Google’s $1.4 billion increase to its debt support for the project. Google now holds warrants representing a 14% equity stake in the company.
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