TeraWulf Inc. Announces Closing of $500 Million 2.75% Convertible Senior Notes Offering

Core Viewpoint - TeraWulf Inc. has successfully completed a private placement of $500 million in 2.75% Convertible Senior Notes due 2030, aimed at enhancing its financial position and supporting growth initiatives [1][4]. Group 1: Convertible Notes Offering - The offering of Convertible Notes was conducted under Rule 144A of the Securities Act, targeting qualified institutional buyers [1]. - The total principal amount includes an additional $75 million from an option granted to initial purchasers [1]. Group 2: Financial Strategy - TeraWulf entered into capped call transactions with a cap price of $12.80, which is a 100% premium over the last reported sale price [2]. - The company repurchased $115 million worth of its common stock as part of its strategy to mitigate shareholder dilution [2][3]. Group 3: Use of Proceeds - The net proceeds from the Convertible Notes sale were approximately $487.1 million after deducting discounts and expenses [4]. - The company plans to allocate $60 million for capped call transaction costs, $115 million for share repurchases, and the remainder for general corporate purposes, including working capital and data center infrastructure expansion [4].