TeraWulf Launches $500M Private Offering for Google-Backed AI Crypto Venture

TeraWulf just dropped a bombshell - they're raising half a billion dollars through convertible notes to fuel an AI project with Google's backing.

The Big Bet

That's right - $500 million in private convertible senior notes hitting the market. Not your typical crypto fundraising play. TeraWulf is going straight for institutional money to bankroll what could be the next frontier in crypto-AI convergence.

Google's Shadow Play

While Google keeps its name clean on the surface, their backing gives this venture the institutional credibility that makes Wall Street types actually pay attention. Smart move - using traditional finance tools to fund bleeding-edge tech. The convertible structure lets investors ride both the debt and equity upside.

Because apparently in crypto, even the most disruptive technologies still need good old-fashioned Wall Street financing to get off the ground. Some things never change - even when you're building the future.

TeraWulf seeks to construct a data center campus

TERAWULF BETS BIG ON AI WITH $500M CONVERTIBLE NOTE OFFERING

TeraWulf’s $500M convertible note sale, hot on the heels of a $3.2B junk bond deal, underscores how AI infrastructure is driving a new financing boom. The Texas data center expansion taps cheap energy but amplifies… pic.twitter.com/JXMbr2iVLf

— Naeem Aslam (@NaeemAslam23) October 29, 2025

TeraWulf revealed that the capital from the purchase will be used to fund a portion of the construction costs of a data center campus in Abernathy, Texas. The initiative to construct the Abernathy campus WOULD mark one of the firm’s largest U.S. expansions so far. The project would also complement its existing low-carbon mining and high-performance computing initiatives in New York and Pennsylvania.

The funds will also be used for general corporate purposes. The Bitcoin miner also said the convertible notes will be senior unsecured obligations of the firm.

According to the report, the convertible notes will carry zero interest, and the principal amount of the convertible notes will remain unchanged. TeraWulf confirmed that the convertible notes will mature on May 1, 2032, unless they are repurchased, redeemed, or converted before that date. 

The firm also maintained that the convertible notes will only be convertible upon satisfaction of certain conditions and during certain periods before February 1, 2032. After that, the convertible notes will be convertible at any time until the end of the business day on the second scheduled trading day immediately preceding the maturity date.

TeraWulf said the convertible notes will be convertible into cash in respect of the aggregate principal amount of the convertible notes to be converted. They can also be converted into cash in exchange for shares of the firm’s common stock, or through a combination of cash and shares of the common stock.

TeraWulf will determine the initial conversion rate and other terms of the convertible notes at the time of pricing. The decision will also involve negotiations with the initial purchasers of the convertible notes.

The bitcoin miner also maintained that the convertible notes or any shares of common stock will not be offered or sold in the U.S. unless registered under the Securities Act or the securities laws of any other jurisdiction. TeraWulf stated that it will only offer the convertible notes to persons believed to be qualified institutional buyers under Rule 144A of the Securities Act.

At the time of publication, TeraWulf shares have plummeted by more than 6.8% in the last 24 hours to $14.90. WULF is still up 16.6% in the past 5 days and has surged by nearly 29% in the past month. The company’s latest initiative adds to its continued aggressive financing streak throughout 2025 as it transitions from pure BTC mining operations to AI-driven HPC infrastructure.

TeraWulf partners with Fluidstck to develop a data center in Texas

TeraWulf $WULF just expanded its partnership with @fluidstackio through a new 168 MW AI compute joint venture in Texas.

Here’s what you should know…

— TeraWulf (@TeraWulfInc) October 28, 2025

Cryptopolitan previously reported that TeraWulf announced a $9.5 billion project earlier this month in collaboration with Google-backed Fluidstack. The initiative aims to develop a 168-megawatt next-generation AI compute capacity. The announcement caused a 25% surge in WULF stock for the day.

“We are very pleased to deepen our strategic alignment with Fluidstack and Google through this long-term joint venture.”

–Paul Prager, CEO of TeraWulf.

The initiative includes a $1.3 billion lease-backing commitment from Google. TeraWulf stated that the project grants it a 51% ownership stake, which accounts for approximately $9.5 billion in contracted revenue for the venture.

According to the 25-year hosting agreement, the project is slated for completion in the second half of 2026. The Bitcoin miner said the venture will cost around $8 million to $10 million per megawatt of critical IT load.

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