Cryptocurrency miner TeraWulf has increased the size of its private offering of convertible bonds to $900 million. The proceeds will fund the construction of a new data center campus in Abernathy, Texas, as well as general corporate initiatives.
Initially, the company aimed to raise $350 million, with early investors given a 13-day option to purchase additional bonds worth up to $125 million. These bonds include a 37.5% conversion premium above the stock’s closing price at issuance, setting the initial conversion price at $19.90 per share.
The bonds are senior and unsecured, with cash repayment options upon conversion. Remaining balances may be settled in cash, stock, or a combination, at the company’s discretion. The net funds raised are expected to total around $877.6 million, potentially reaching nearly $1 billion if the full greenshoe option is exercised.
TeraWulf is among the Bitcoin miners shifting focus toward AI and high-performance computing (HPC) infrastructure. According to JPMorgan, publicly traded crypto mining firms are increasingly valued for their computing infrastructure and margins, not just digital assets.
Other players are also investing in AI infrastructure. For instance, Core Scientific secured a 200 MW capacity deal with CoreWeave, and in July 2025, a startup announced plans to acquire this miner for $9 billion. Meanwhile, companies like Bitdeer, CleanSpark, and Iris Energy are developing AI solutions, data centers, and cloud GPU services.
Bitcoin miner MARA is leveraging zero-coupon convertible bonds to acquire assets and restructure debt while continuing to focus on cryptocurrency and corporate treasury management.
Previously, TeraWulf revealed a $9.5 billion joint venture with Fluidstack, aimed at AI computing hosting. The expanded bond offering strengthens the company’s strategy to accelerate AI infrastructure growth.
This move comes amid growing regulatory attention, including New York authorities proposing a mining tax in response to increased energy consumption.
