TeraWulf Prices $900M Stock Offering for AI Data Center

TeraWulf priced a $900 million common stock offering on April 14, selling 47.4 million shares at $19 each to fund construction of a planned AI data center campus in Hawesville, Kentucky and to repay amounts under a bridge credit facility. The stock slipped about 6% in premarket trading.

The offering was increased from an initial $800 million target and includes a 30-day option for underwriters to purchase an additional 7.11 million shares at the same price. Morgan Stanley is the lead bookrunning manager and Cantor Fitzgerald is serving as equity capital markets advisor. Net proceeds will be used for construction costs at the Hawesville campus and to fully repay outstanding bridge debt. The sale is expected to close on April 16.

Separately, TeraWulf released preliminary results for the quarter ended March 31. The company forecasted revenue between $30 million and $35 million and adjusted EBITDA of up to $3 million, effectively near break-even on an adjusted basis. TeraWulf reported $3.1 billion in cash, cash equivalents and restricted cash as of March 31 and $5.8 billion in total debt.

The reported debt includes $2.5 billion of convertible notes at TeraWulf, $3.2 billion of senior secured notes at WULF Compute LLC and $100 million of delayed-draw bridge loans at its Kentucky subsidiaries.

Chief Financial Officer Patrick Fleury described the preliminary results as reflecting a transition to long-term, credit-enhanced revenues. He noted that more than half of first-quarter revenue came from high-performance computing hosting and that additional hosting capacity is expected to come online during the year.

Investor reaction was muted in early trading. Shares fell to about $19.70 in premarket action after closing the April 14 session at $20.95, a 7.7% gain for the day. Over the past six months the stock has risen roughly 18%.

TeraWulf has positioned the Hawesville campus to serve AI and high-performance computing workloads in addition to bitcoin mining. The company reported no specific completion timelines in its preliminary release but said more capacity will be brought online through the year. The planned offering and bridge repayment are intended to move near-term funding for the Kentucky project away from short-term credit facilities toward equity financing while preserving cash on hand.