TeraWulf Dips 5% on $500M Capital Raise to Fund AI Data Center Expansion

Core Viewpoint - TeraWulf is shifting its focus from bitcoin mining to powering artificial intelligence infrastructure, planning to raise up to $575 million through a private sale of convertible senior notes [1][3] Group 1: Financing Details - The company plans to sell $500 million in convertible senior notes due in 2032, with an option for an additional $75 million [1] - The offering is limited to qualified institutional investors [1] - The convertible notes will not pay regular interest and can be converted into cash, stock, or a combination of both, depending on the company's election [3] Group 2: Use of Proceeds - Proceeds from the sale will fund the construction of a data center in Abernathy, Texas [2] - This initiative is part of a $9.5 billion joint venture with Fluidstack to build a 168-megawatt data center at TeraWulf's Texas campus [2] Group 3: Market Reaction - Shares of TeraWulf are down 5% in premarket trading after a 17% surge the previous day [2] Group 4: Strategic Partnerships - Google is backing $1.3 billion of Fluidstack's long-term lease obligations, enhancing lender confidence due to the tech giant's strong balance sheet [3] - Two months prior, TeraWulf raised $850 million related to its data center expansion [3]