TeraWulf Bets Big: $400M Private Notes to Supercharge Bitcoin Mining & Data Centers – Plus $60M Upsize Wildcard
TeraWulf just loaded the cannon—$400 million in private notes to fuel its Bitcoin mining and data center ambitions. Wall Street’s already whispering about that sneaky $60 million upsize option.
Why it matters: This isn’t just another debt raise. It’s a power move in the high-stakes game of hashrate dominance. More data centers mean more Bitcoin mined—simple math, unless you’re a short-seller.
The cynical take: Because nothing says 'bull market' like a miner leveraging up before the next halving. What could go wrong?
TeraWulf Explains Use of Proceeds
TeraWulf said proceeds from the sale will be used in part to cover costs of capped call transactions, with the remainder directed toward expanding its data centers and other corporate purposes. The company described the notes as senior unsecured obligations carrying semi-annual interest payments beginning March 1, 2026, and maturing on September 1, 2031, unless repurchased, redeemed, or converted earlier.
TeraWulf Announces Fluidstack Expansion with 160 MW CB-5 Lease at Lake Mariner
@fluidstackio has exercised its option to expand at the Company’s Lake Mariner data center campus in Western New York. The expansion adds CB-5, a new purpose-built data center building providing an…
The notes will be convertible into cash, shares of common stock, or a combination of both, at the company’s election. Any conversion into shares will depend on stockholder approval for an increase in the authorized common stock.
In connection with the pricing, TeraWulf said it expects to enter into capped call transactions with financial institutions, designed to reduce potential dilution of its common stock upon conversion.
These institutions or their affiliates may purchase shares or enter derivative positions in the company’s stock to hedge their exposure, which could affect market prices of both the shares and the notes.
The securities have not been registered under the Securities Act and may only be offered in the U.S. under an applicable exemption. The company noted that the offering’s completion depends on market conditions.
Options to Repurpose Data Centers
Bitcoin mining companies are seeking new financing channels to scale operations amid rising competition for computing power. Access to capital markets through convertible notes provides miners with funding flexibility without immediately diluting shareholders, a strategy several peers have also employed.
Analysts are watching whether expanded data center investments could strengthen miners’ positioning in the broader digital infrastructure sector.
With demand for high-performance computing growing across artificial intelligence and blockchain applications, the ability to allocate capacity beyond cryptocurrency mining could shape longer-term revenue models.
Frequently Asked Questions (FAQs)
How does this connect to AI and cloud computing?Data centers built for mining can be adapted for AI training and cloud services, diversifying revenue beyond Bitcoin production.
Are such financing methods common outside crypto?Yes. Tech and energy firms often issue convertible notes to balance funding needs with equity considerations—crypto miners are now following suit.
How does convertible debt differ from equity fundraising for miners?Unlike issuing shares, convertible notes delay dilution until conversion, letting miners secure funding without immediately expanding their shareholder base.
