Bitcoin Miner TeraWulf Unveils $500 Million Private Financing Plan

TLDR

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TeraWulf to raise $500 million via convertible notes due 2032.
Funds to support a new data center campus in Abernathy, Texas.
The move follows a $9.5B joint venture with Google-backed Fluidstack.
TeraWulf’s 2025 financing streak includes a $3B debt expansion plan.

Bitcoin miner TeraWulf Inc. has announced another major fundraising effort, continuing its rapid expansion in the high-performance computing and digital infrastructure space. The company plans to raise $500 million through a private offering of convertible senior notes due 2032, with an option for initial purchasers to buy an additional $75 million. The move follows a series of large-scale financing initiatives and partnerships that have reshaped the company’s strategy in 2025.

TeraWulf Proposes $500 Million Convertible Notes Offering

TeraWulf said in a statement that it intends to offer $500 million in convertible senior notes due in 2032. The notes are expected to be sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act. Purchasers will also have an option to acquire an extra $75 million in notes.

Convertible notes combine features of both debt and equity. They allow a company to raise funds while providing flexibility to convert debt into shares under certain conditions. This method gives the company access to capital without immediate dilution of shareholder value but can increase leverage if market conditions tighten.

The proceeds from this offering will be used for the construction of a large data center campus in Abernathy, Texas. The remaining funds will be allocated to general corporate purposes. The planned facility would become one of TeraWulf’s largest U.S. operations and is expected to complement its existing low-carbon bitcoin mining and high-performance computing (HPC) facilities in New York and Pennsylvania.

Expansion Strategy and Market Performance

TeraWulf shares fell about 5% following the announcement, according to The Block’s stock page. Despite the decline, the company has maintained an aggressive pace of financing in 2025. It has shifted from a focus solely on bitcoin mining to building infrastructure for AI-driven high-performance computing workloads.

Earlier this year, the company announced multiple debt and equity funding plans as part of its broader expansion strategy. In September, TeraWulf revealed plans to raise $3 billion in debt to expand its data center capacity across North America. These moves reflect the company’s continued investment in digital infrastructure despite market volatility.

Partnership with Google-Backed Fluidstack

Earlier this month, TeraWulf entered a $9.5 billion joint venture with Fluidstack, a cloud computing firm backed by Google. The partnership aims to deliver next-generation AI computing capacity using TeraWulf’s existing energy-efficient infrastructure. The announcement pushed TeraWulf’s stock up by 25% on the day it was made public.

The collaboration also strengthened Google’s position in the AI-compute market. August filings revealed that Google’s pro forma stake in TeraWulf had increased to 14%. The stake growth followed a $3.7 billion, 10-year deal signed in July, marking Google’s deeper involvement in AI data infrastructure projects through long-term agreements.

Financial Momentum and Future Outlook

Despite widening net losses, TeraWulf has reported rapid revenue growth driven by its expansion into AI computing. In May, the company recorded a 102% year-over-year increase in revenue, supported by ongoing investments in data centers and energy-efficient mining operations.

TeraWulf’s financing streak throughout 2025 demonstrates its effort to position itself as a major infrastructure provider for both bitcoin mining and AI computing. The latest private offering adds to its ongoing capital strategy aimed at scaling its U.S. operations and diversifying its revenue sources in the evolving digital asset and computing landscape.