Core Viewpoint - TeraWulf Inc. has announced an offering of $850 million in 1.00% Convertible Senior Notes due 2031, aimed at qualified institutional buyers, with the offering expected to close on August 20, 2025 [1][3]. Group 1: Transaction Details - The initial purchasers of the Convertible Notes have a 13-day option to purchase an additional $150 million [3]. - The expected net proceeds from the offering are approximately $828.7 million, or $975.2 million if the option is fully exercised [4]. - The Convertible Notes will accrue interest at a rate of 1.00% per annum, payable semi-annually, and will mature on September 1, 2031 [5]. Group 2: Use of Proceeds - Approximately $85.5 million of the net proceeds will be used for capped call transactions, with the remainder allocated for data center expansion and general corporate purposes [4]. Group 3: Convertible Notes Features - The initial conversion rate is set at 80.4602 shares per $1,000 principal amount, equating to an initial conversion price of approximately $12.43 per share, representing a 32.50% premium over the closing price of $9.38 on August 18, 2025 [6]. - The Company may redeem the Convertible Notes starting September 6, 2028, under specific conditions [7]. - Holders can require the Company to repurchase their Convertible Notes upon a fundamental change at a cash price of 100% of the principal amount plus accrued interest [10]. Group 4: Capped Call Transactions - The capped call transactions are designed to reduce potential dilution upon conversion of the Convertible Notes, with an initial cap price of $18.76 per share, representing a 100% premium over the last reported sale price [8][11]. - The Company expects to use part of the net proceeds from any additional Convertible Notes sold to enter into further capped call transactions [11]. Group 5: Company Overview - TeraWulf develops and operates environmentally sustainable, industrial-scale data center infrastructure in the U.S., focusing on high-performance computing and bitcoin mining [16].

Core Insights - TeraWulf's shares increased by 4.6% following significant investments from Google, indicating strong market interest in AI data centers [1] - The company has secured a deal with Fluidstack to provide 200 megawatts of compute power, highlighting its role in the AI cloud sector [2] - Google's financial backing has increased from $1.8 billion to $3.2 billion, which will support TeraWulf's data center expansion and enhance creditor confidence [3] Company Developments - TeraWulf is expanding its operations through a partnership with Fluidstack, which will enhance its computing capabilities [2] - The company is utilizing stock sales to raise $400 million in a private placement, which may dilute shareholder value [5] - Despite the growth opportunities, TeraWulf remains unprofitable and heavily reliant on debt financing, making it vulnerable to fluctuations in AI demand [5] Industry Context - The demand for AI computing power is outpacing supply, leading to a competitive environment for data center construction [5] - Companies like TeraWulf are positioned to benefit from this demand surge, although the high costs of expansion pose significant financial risks [5]

Core Insights - TeraWulf's stock increased by over 10% following Google's decision to raise its stake in the bitcoin miner and datacenter operator, as Google supports the expansion of TeraWulf's Lake Mariner facility in New York [1] - Google will provide up to $1.4 billion in additional funding, increasing its total investment to approximately $3.2 billion and raising its ownership stake in TeraWulf from 8% to 14% [1] - The agreement is seen as a strategic alignment between TeraWulf and Google to develop advanced artificial intelligence infrastructure [2] Financial Performance - TeraWulf's shares have surged about 90% over the past week, driven by the recent agreements and partnerships [2] - The company has secured two 10-year computing contracts with AI cloud provider Fluidstack, which will provide over 200 megawatts of capacity at the Lake Mariner datacenter [2]

Group 1 - Novo Nordisk shares rose by 5.9% following FDA approval for the weight loss drug Wegovy to be used in liver disease treatment [1] - Terawulf shares increased by 12.6% after Google announced an increase in its stake in Terawulf from approximately 8% to 14% [1] - Soho House shares surged by 16.2% as MCR Hotels' lead investor plans to take the company private at approximately $9 per share [1] - iQIYI shares jumped by 17.1% with the recent launch of the new series "生万物," achieving significant viewership on both TV and online platforms [1]

Core Viewpoint - Terawulf has secured a $1.4 billion funding agreement from Google to support the expansion of its Lake Mariner data center in New York, potentially increasing Google's stake in Terawulf to approximately 14% through warrants [1] Group 1: Funding and Investment - Google has agreed to provide $1.4 billion in funding for Terawulf's Lake Mariner data center expansion project [1] - The total guarantee amount for the Lake Mariner data center project has increased to $3.2 billion, with Google receiving warrants for 32.5 million shares of Terawulf common stock as part of the additional guarantee [1] Group 2: Operational Developments - Terawulf's tenant, Fluidstack, has exercised its expansion option, which includes the addition of a new data center building named CB-5, expected to provide an additional 160 megawatts of critical IT load and to be operational by the second half of 2026 [1] - The lease terms for CB-5 will remain consistent with the initial economic conditions of Fluidstack's previous leases for CB-3 and CB-4 [2]

Core Viewpoint - TeraWulf Inc. plans to offer $400 million in convertible senior notes due 2031, subject to market conditions, to qualified institutional buyers [1][10] Group 1: Offering Details - The company may grant initial purchasers an option to buy an additional $60 million in convertible notes within 13 days of the initial issuance [2] - The offering is contingent on market conditions, and there is no assurance regarding its completion [2] - The convertible notes will be senior unsecured obligations, accruing interest payable semi-annually starting March 1, 2026, and maturing on September 1, 2031 [4] Group 2: Use of Proceeds - Net proceeds from the offering will be used to cover costs related to capped call transactions and to finance data center expansion and general corporate purposes [3] Group 3: Conversion Terms - The convertible notes can be converted into cash or a combination of cash and shares of common stock, subject to stockholder approval for an increase in authorized shares [5] - Conversion is restricted until certain conditions are met prior to June 1, 2031, after which it can occur at any time until two trading days before maturity [4][5] Group 4: Capped Call Transactions - The company plans to enter capped call transactions to reduce potential dilution of common stock upon conversion of the notes [6][7] - Initial hedging activities related to these transactions may influence the market price of the common stock and convertible notes [8] Group 5: Company Overview - TeraWulf develops and operates environmentally sustainable data center infrastructure in the U.S., focusing on high-performance computing and bitcoin mining [12]

Core Insights - TeraWulf has expanded its contracted capacity to over 360 MW of critical IT load, representing $6.7 billion in contracted revenue, with potential to reach $16 billion through lease extensions [1][4] - Google has increased its financial commitment to TeraWulf, raising its backstop to $3.2 billion and its stake in the company to 14% [2] Capacity Expansion - The new CB-5 lease adds an incremental 160 MW of critical IT load at the Lake Mariner data center, with operations expected to start in the second half of 2026 [1][4] - The total contracted critical IT load for Fluidstack at Lake Mariner now stands at approximately 360 MW, solidifying its status as one of the largest high-performance computing campuses in the U.S. [4] Financial Commitments - Google will provide an additional $1.4 billion in support of project-related debt financing, alongside warrants to acquire 32.5 million shares of TeraWulf common stock [2] - The economic terms of the CB-5 lease are consistent with the initial Fluidstack leases for CB-3 and CB-4, ensuring uniformity in structure and economics [3] Strategic Alignment - The expansion of CB-5 enhances TeraWulf's strategic alignment with Google, positioning the company as a critical partner in delivering next-generation AI infrastructure [5] - TeraWulf's leadership emphasizes the importance of this expansion in reinforcing its role in the AI and HPC infrastructure ecosystem [5][6] Infrastructure Capabilities - The CB-5 facility will be purpose-built for high-density, liquid-cooled workloads, utilizing Lake Mariner's dual 345 kV transmission lines and sustainable water cooling [6] - TeraWulf's infrastructure is designed to support significant future expansions as Fluidstack's compute requirements grow [6]

Company Overview - TeraWulf Inc. is considered a late mover in the Bitcoin mining sector, particularly in high performance computing (HPC) [1] - The company began its serious pivot towards HPC last year [1] Leadership and Expertise - Mandela, associated with TeraWulf, has been a cryptocurrency enthusiast and trader since 2017, with a strong background in coding and writing about cryptocurrencies [1] - He possesses an in-depth understanding of distributed ledger technology, the Web3 technology stack, and crypto investment strategies [1] Research and Analysis - The company focuses on researching and analyzing cryptocurrency projects, Web3 trends, and security tokens [1] - Mandela is also a contributing writer for Seeking Alpha, indicating a commitment to sharing insights and analysis within the cryptocurrency space [1]

Core Insights - The trend of cryptocurrency mining companies transitioning to AI and high-performance computing (HPC) services is becoming evident due to reduced mining profits from declining energy costs [1][6] - Bitcoin mining costs are projected to exceed $70,000 by Q2 2025, up approximately 9.4% from $64,000 in Q1 2025, necessitating diversification for mining companies [1][6] - The recent Bitcoin halving in April 2024 has significantly reduced mining rewards, prompting miners to seek alternative revenue streams [1][6] Transition Trends - Core Scientific has signed a $3.5 billion, 12-year GPU infrastructure hosting agreement with AI cloud provider CoreWeave, marking one of the largest AI hosting deals ever [2] - Riot has paused its Bitcoin mining expansion to focus on leasing its facilities to AI companies, indicating a shift in strategy [2] - MARA Holdings plans to acquire a 64% stake in Exaion for $168 million, aiming to expand its AI infrastructure business [2] Recent Examples - TeraWulf has entered into two ten-year agreements with Fluidstack to provide HPC clusters, with total contract revenue potentially reaching $8.7 billion [3] - Google is investing $1.8 billion in TeraWulf's project, receiving warrants for approximately 8% equity in return [3] - The profitability of AI computing is significantly higher than Bitcoin mining, with Iris Energy's AI service revenue reaching $2.2 million by June 2025, compared to a 75% profit margin in mining [3] Market Reactions - CoreWeave's transformation from a small mining company to a major AI computing provider has resulted in a valuation of $48 billion and a revenue increase of 200% year-over-year [4] - TeraWulf's stock surged nearly 60% after Google's investment, highlighting the market's positive response to strategic shifts [4][6] - Analysts from Morgan Stanley and JPMorgan are optimistic about the potential for companies like CleanSpark, Riot, and MARA to enter the HPC service market, with MARA's stock rating upgraded to "overweight" [5][6] Strategic Drivers - The primary driver for mining companies transitioning to AI/HPC services is the need for diversified profit models, as evidenced by CoreWeave's success [6] - The ability to convert existing infrastructure into sustainable profitability will be crucial for companies navigating market cycles [6]

A massive AI data center deal is sending TeraWulf stock through the roof. Shares of TeraWulf (WULF 46.98%) are flying on Thursday, up 44.1% as of 1:09 p.m. ET. The jump comes as the S&P 500 and Nasdaq Composite were down slightly. TeraWulf, a Bitcoin miner and high-performance computing (HPC) data center company, announced it inked a 10-year, $3.7 billion deal backed by Alphabet's Google. Along with releasing its second-quarter earnings, TeraWulf announced a major co-location deal with Fluidstack, an artifi ...