TeraWulf upsizes private offering to $900 million to fund Texas data center expansion

TeraWulf Inc. (ticker WULF) now plans to raise $900 million from privately offered convertible senior notes due 2032 as the firm pivots from core bitcoin mining operations to building artificial intelligence data facilities.

The upsized print follows TeraWulf’s earlier proposed $500 million offering, disclosed on Wednesday, per The Block’s prior coverage . Initial purchasers now have a 13-day option to buy up to an additional $125 million. Additionally, a company statement said the zero-coupon notes carry a 37.5% conversion premium to Wednesday’s $14.50 close, implying an initial conversion price of $19.9375 per share.

According to the investor update, the notes are senior unsecured, payable in cash for principal upon conversion, with any excess settled in cash, stock, or a mix at the company’s election. Proceeds — about $877.6 million net or $999.7 million if the greenshoe is fully exercised — are earmarked to fund construction of TeraWulf’s Abernathy, Texas data-center campus and for general corporate purposes.

Across the sector, bitcoin miners are retooling for AI/HPC and tapping capital markets to fund plans. Analysts at JPMorgan say listed bitcoin miners are increasingly “decoupling” from the price of bitcoin as they pivot toward AI-related infrastructure. The bank’s team, led by managing director Nikolaos Panigirtzoglou, wrote that miners once viewed as simple bitcoin proxies are now being re-rated based on AI exposure and computing margins, a shift that puts firms like TeraWulf squarely in focus.

Furthermore, Core Scientific has deepened ties with CoreWeave, signing a 200 MW AI-capacity deal and a 2025 acquisition proposal. Also, Bitdeer has advanced its in-house AI development, while CleanSpark has shared data center plans to pursue AI conversions, and Iris Energy has scaled GPU-backed AI cloud services.

Meanwhile, Marathon has used zero-coupon converts to buy bitcoin and restructure its debt, maintaining its core BTC focus while pursuing a corporate treasury strategy.

This week’s proposed raise extends TeraWulf’s aggressive financing and AI pivot. Earlier this month, the company announced a $9.5 billion Google-backed joint venture with Fluidstack, tied to long-dated AI compute hosting.