TeraWulf Inc. Announces Upsize and Pricing of $850 Million Convertible Notes Offering
TeraWulf (NASDAQ: WULF), a zero-carbon digital infrastructure company, has announced the pricing of $850 million in Convertible Senior Notes due 2031 with a 1.00% interest rate. The notes will be sold to qualified institutional buyers under Rule 144A.
The notes will have an initial conversion price of $12.43 per share, representing a 32.50% premium over the closing price of $9.38. The company expects net proceeds of approximately $828.7 million, which will be used for data center expansion and corporate purposes. Additionally, TeraWulf entered into capped call transactions with a cap price of $18.76 per share, representing a 100% premium.
The initial purchasers have a 13-day option to buy up to $150 million in additional notes. The offering is expected to close on August 20, 2025.
TeraWulf (NASDAQ: WULF), azienda di infrastrutture digitali a emissioni zero, ha annunciato il prezzo di 850 milioni di dollari in Convertible Senior Notes con scadenza 2031 e un tasso d'interesse dell'1,00%. Le note saranno vendute a investitori istituzionali qualificati ai sensi della Rule 144A.
Le note avranno un prezzo di conversione iniziale di 12,43$ per azione, pari a un premio del 32,50% rispetto al prezzo di chiusura di 9,38$. La società prevede proventi netti di circa 828,7 milioni di dollari, che saranno destinati all'espansione dei data center e ad esigenze aziendali. Inoltre, TeraWulf ha stipulato operazioni di capped call con un prezzo cap di 18,76$ per azione, corrispondente a un premio del 100%.
Gli acquirenti iniziali hanno un'opzione di 13 giorni per acquistare fino a 150 milioni di dollari in note aggiuntive. La chiusura dell'offerta è prevista per il 20 agosto 2025.
TeraWulf (NASDAQ: WULF), una empresa de infraestructura digital con cero emisiones, ha anunciado el precio de 850 millones de dólares en Convertible Senior Notes con vencimiento en 2031 y una tasa de interés del 1,00%. Las notas se venderán a compradores institucionales calificados bajo la Regla 144A.
Las notas tendrán un precio de conversión inicial de 12,43$ por acción, lo que representa una prima del 32,50% sobre el cierre de 9,38$. La compañía espera ingresos netos de aproximadamente 828,7 millones de dólares, que se destinarán a la ampliación de centros de datos y a fines corporativos. Además, TeraWulf celebró transacciones de capped call con un precio tope de 18,76$ por acción, equivalente a una prima del 100%.
Los compradores iniciales tienen una opción de 13 días para adquirir hasta 150 millones de dólares en notas adicionales. Se espera que la oferta cierre el 20 de agosto de 2025.
TeraWulf (NASDAQ: WULF), 무탄소 디지털 인프라 기업이 2031년 만기 전환사채(Convertible Senior Notes) 8억 5천만 달러의 가격을 공시했으며, 이 채권의 이자율은 1.00%입니다. 해당 채권은 Rule 144A에 따라 적격 기관투자자에게 판매됩니다.
채권의 초기 전환가액은 주당 12.43달러로, 종가 9.38달러보다 32.50%의 프리미엄을 반영합니다. 회사는 약 8억 2,870만 달러의 순수익을 예상하며, 이는 데이터센터 확장 및 기업 목적에 사용될 예정입니다. 또한 TeraWulf는 주당 18.76달러의 캡 가격을 가진 캡드콜(capped call) 거래를 체결했으며, 이는 100% 프리미엄에 해당합니다.
초기 인수자들은 최대 1억 5천만 달러의 추가 채권을 13일 동안 매입할 수 있는 옵션을 보유하고 있습니다. 거래 마감은 2025년 8월 20일로 예상됩니다.
TeraWulf (NASDAQ: WULF), une société d'infrastructures numériques zéro carbone, a annoncé le prix de 850 millions de dollars en Convertible Senior Notes arrivant à échéance en 2031, au taux d'intérêt de 1,00 %. Les obligations seront vendues à des acheteurs institutionnels qualifiés selon la Rule 144A.
Les notes auront un prix de conversion initial de 12,43 $ par action, représentant une prime de 32,50 % par rapport au cours de clôture de 9,38 $. La société prévoit des produits nets d'environ 828,7 millions de dollars, qui seront utilisés pour l'expansion des centres de données et des besoins généraux de l'entreprise. De plus, TeraWulf a conclu des opérations de capped call avec un prix plafond de 18,76 $ par action, soit une prime de 100 %.
Les acheteurs initiaux disposent d'une option de 13 jours pour acheter jusqu'à 150 millions de dollars de notes supplémentaires. La clôture de l'offre est prévue le 20 août 2025.
TeraWulf (NASDAQ: WULF), ein klimaneutrales Digitalinfrastruktur-Unternehmen, hat die Preisfestsetzung von 850 Millionen US-Dollar in Convertible Senior Notes mit Fälligkeit 2031 bekanntgegeben; der Zinssatz beträgt 1,00%. Die Notes werden gemäß Rule 144A an zugelassene institutionelle Käufer verkauft.
Die Notes haben einen anfänglichen Umwandlungspreis von 12,43$ je Aktie, was einem Aufschlag von 32,50% gegenüber dem Schlusskurs von 9,38$ entspricht. Das Unternehmen erwartet Nettoerlöse von rund 828,7 Millionen US-Dollar, die für den Ausbau von Rechenzentren und für Unternehmenszwecke verwendet werden sollen. Zusätzlich schloss TeraWulf Capped-Call-Transaktionen mit einem Cap-Preis von 18,76$ je Aktie ab, was einem Aufschlag von 100% entspricht.
Die Erstkäufer haben eine 13-tägige Option zum Erwerb von bis zu 150 Millionen US-Dollar an zusätzlichen Notes. Der Abschluss des Angebots wird für den 20. August 2025 erwartet.
- Substantial capital raise of $850 million through convertible notes
- Low interest rate of 1.00% per annum on the notes
- Capped call transactions implemented to reduce potential dilution
- Significant funding secured for data center expansion
- Potential dilution for existing shareholders upon conversion
- Increased debt burden with $850 million in new obligations
- Conversion option subject to stockholder approval for authorized share increase
- Additional interest expense of approximately $8.5 million annually
Insights
TeraWulf's $850M convertible note offering at favorable terms significantly bolsters expansion capacity while minimizing immediate dilution.
TeraWulf has successfully upsized its convertible notes offering to
The conversion premium of
The transaction's structure reveals sophisticated treasury management - the
This offering significantly strengthens TeraWulf's balance sheet, providing ample capital for its growth initiatives while maintaining financial flexibility through the relatively low interest burden. The strong institutional interest, evidenced by the upsized offering amount, validates the company's strategic position in the zero-carbon digital infrastructure space.
EASTON, Md., Aug. 18, 2025 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a leading owner and operator of vertically integrated, predominantly zero-carbon digital infrastructure, today announced the upsize and pricing of its offering of
Key Elements of the Transaction:
$850 million 1.00% Convertible Senior Notes offering (32.50% conversion premium)- Capped call transactions entered into in connection with the
1.00% Convertible Senior Notes due 2031 with an initial cap price of$18.76 per share of common stock, which represents a100% premium to the closing sale price of TeraWulf’s common stock on August 18, 2025
TeraWulf has granted the initial purchasers of the Convertible Notes a 13-day option to purchase up to an additional
Use of Proceeds:
The Company anticipates that the aggregate net proceeds from the offering will be approximately
Additional Details of the Convertible Notes:
The Convertible Notes will be senior unsecured obligations of the Company and will accrue interest at a rate of
The Convertible Notes will be convertible into cash in respect of the aggregate principal amount of the Convertible Notes to be converted and cash, shares of the Company’s common stock (“common stock”) or a combination of cash and shares of common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. The Company’s ability to elect to settle conversions in shares of common stock will be subject to its receipt of stockholder approval for an increase in the number of the Company’s authorized shares of common stock. The conversion rate will initially be 80.4602 shares of common stock per
The Company may not redeem the Convertible Notes prior to September 6, 2028. The Company may redeem for cash all or any portion of the Convertible Notes, at its option, on or after September 6, 2028, if the last reported sale price of the common stock has been at least
Holders of the Convertible Notes will have the right to require the Company to repurchase all or a portion of their Convertible Notes upon the occurrence of a fundamental change (as defined in the indenture governing the Convertible Notes) at a cash repurchase price of
Capped Call Transactions:
In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with certain financial institutions (the “option counterparties”). The cap price of the capped call transactions will initially be
The capped call transactions are expected generally to reduce potential dilution to the common stock upon conversion of any Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap.
In connection with establishing their initial hedges of the capped call transactions, the Company expects the option counterparties or their respective affiliates to purchase shares of the common stock and/or enter into various derivative transactions with respect to the common stock concurrently with or shortly after the pricing of the Convertible Notes. This activity could increase (or reduce the size of any decrease in) the market price of the common stock or the Convertible Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or purchasing or selling shares of the common stock or other securities of the Company in secondary market transactions following the pricing of the Convertible Notes and prior to the maturity of the Convertible Notes (and are likely to do so on each exercise date for the capped call transactions or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the Convertible Notes). This activity could also cause or avoid an increase or decrease in the market price of the common stock or the Convertible Notes, which could affect holders of the Convertible Notes’ ability to convert the Convertible Notes and, to the extent the activity occurs following conversion of the Convertible Notes or during any observation period related to a conversion of the Convertible Notes, it could affect the amount and value of the consideration that holders of the Convertible Notes will receive upon conversion of such Convertible Notes.
The Convertible Notes and any shares of common stock issuable upon conversion of the Convertible Notes, if any, have not been registered under the Securities Act, securities laws of any other jurisdiction, and the Convertibles Notes and such shares of common stock may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Convertible Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act.
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Convertible Notes, nor shall there be any sale of the Convertible Notes or common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About TeraWulf
TeraWulf develops, owns, and operates environmentally sustainable, industrial-scale data center infrastructure in the United States, purpose-built for high-performance computing (HPC) hosting and bitcoin mining. Led by a team of veteran energy infrastructure entrepreneurs, TeraWulf is committed to innovation and operational excellence, with a mission to lead the market in large-scale digital infrastructure by serving both its own compute requirements and those of top-tier HPC clients as a trusted hosting partner.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts, such as statements concerning the terms of the notes and the capped call transactions, the completion, timing and size of the offering of the notes and the capped call transactions, and the anticipated use of proceeds from the offering. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “seek,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “strategy,” “opportunity,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) the ability to mine bitcoin profitably; (2) TeraWulf’s ability to attract additional customers to lease its HPC data centers; (3) TeraWulf’s ability to perform under its existing data center lease agreements; (4) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates; (5) the ability to implement certain business objectives, including its bitcoin mining and HPC data center development, and to timely and cost-effectively execute related projects; (6) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to expansion or existing operations; (7) adverse geopolitical or economic conditions, including a high inflationary environment, the implementation of new tariffs and more restrictive trade regulations; (8) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (9) the availability and cost of power as well as electrical infrastructure equipment necessary to maintain and grow the business and operations of TeraWulf; and (10) other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.
Investors:
Investors@terawulf.com
Media:
media@terawulf.com
FAQ
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