Crypto Miner TeraWulf Aims for $500M Boost to Power Sustainable Texas Buildout

TLDR:

• TeraWulf plans a $500M private offering of convertible notes due 2032 to fund a Texas data center project.
• The firm may issue up to $75M extra in notes if demand exceeds initial placement.
• Convertible notes won’t bear interest and may convert into cash, stock, or both before maturity.
• Proceeds will fund TeraWulf’s Abernathy, Texas data hub and broader corporate operations.
  

TeraWulf Inc. is gearing up for a large-scale fundraise that could reshape its U.S. operations. The company announced plans for a private offering of $500 million in convertible senior notes due 2032. 

The goal is to fuel the construction of a new data center campus in Abernathy, Texas, and cover other corporate costs. The move follows growing investor interest in infrastructure tied to digital assets and clean-energy mining. 

Convertible Notes Target Institutional Investors

According to the October 29 statement, the offer will be made to institutional buyers under Rule 144A of the Securities Act. 

The proposed notes will be senior unsecured obligations that mature on May 1, 2032. They will not accrue interest or increase in principal value during the period.

TeraWulf stated that investors may have the option to purchase an extra $75 million in notes within 13 days of issuance. The terms, including conversion rates, will be determined during final pricing discussions with the initial buyers.

The company noted that conversion can occur in cash, stock, or a mix of both depending on the company’s decision. Before February 2032, conversion will be allowed only under specific conditions, opening fully afterward until maturity.

Funds to Support Texas Infrastructure Buildout

The company said the raised capital will be directed toward the buildout of its Abernathy data center campus in Texas. 

The location is expected to enhance TeraWulf’s vertically integrated, low-carbon digital infrastructure model. It aligns with the company’s plan to expand capacity while maintaining clean energy operations.

Part of the proceeds will also cover general business needs, supporting the company’s expansion and operational continuity. By issuing convertible notes, TeraWulf aims to attract institutional investors while keeping flexibility on conversion terms.

Wu Blockchain reported that the move highlights growing corporate financing strategies within the crypto-linked infrastructure space. Market conditions will determine the offer’s success and timing, as mentioned in the release.

TeraWulf trades under the ticker WULF on Nasdaq. The new capital plan could position the firm to expand its mining and hosting capabilities in Texas. Analysts say the Abernathy project could become one of its core assets once complete.

The offering is still subject to market conditions, with no guarantee of completion or pricing timeline. However, the company’s move signals ongoing investor appetite for regulated digital infrastructure ventures.

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