TLDR
- TeraWulf priced 47.4 million shares at $19 each and raised $900 million.
- The stock fell about 6% to $19.70 in pre-market trading after the deal priced.
- Net proceeds will fund the Hawesville, Kentucky AI data center campus.
- Underwriters can buy 7.11 million additional shares within 30 days.
- TeraWulf sees first-quarter revenue of $30 million to $35 million and EBITDA up to $3 million.
TeraWulf shares fell in pre-market trading after the company priced a larger stock sale. The bitcoin miner said the money will support its AI data center buildout in Kentucky. Investors also weighed early first-quarter numbers that pointed to slim earnings.
The stock sale grew to $900 million from an earlier $800 million target. That increase put the financing plan at the center of the market reaction. The company now faces close watch on funding, construction, and revenue mix.
Offer terms and use of funds
TeraWulf priced 47.4 million common shares at $19 each on April 14. The company also gave underwriters a 30-day option for 7.11 million additional shares. Morgan Stanley led the deal, and Cantor Fitzgerald advised on equity markets.
The Maryland-based company expects the offering to close on April 16. It said the net proceeds will fund its planned Hawesville campus. The money will also repay outstanding amounts under its bridge credit facility.
That plan links the capital raise to the company’s AI data center buildout. It also eases near-term pressure from bridge financing at the Kentucky site. As a result, the raise supports both construction and funding needs. The company has tied future growth to hosting and AI-related infrastructure.
Share reaction follows strong prior session
WULF fell about 6% to $19.70 before the opening bell. The drop came after the stock closed 7.7% higher at $20.95 on April 14. Even after the pullback, the shares were about 18% above their level six months earlier.
New share sales often weigh on stocks because they expand the share count. Investors also compare the offer price with the latest market close. In this case, the deal priced below the previous session’s closing price.
So, traders focused on dilution and on the cost of the expansion. They also watched whether the new capital could speed project execution. For now, the stock response shows caution around the larger financing move. That reaction kept the offering as the main market story.
Early quarterly figures show thin earnings
TeraWulf expects first-quarter revenue between $30 million and $35 million. It expects adjusted EBITDA between break even and $3 million. Those early figures show a business still moving through a transition. More detailed results are expected with the formal quarterly release.
As of March 31, the company reported $3.1 billion in cash, cash equivalents, and restricted cash. Total debt stood at $5.8 billion. That total included convertible notes, secured notes, and delayed draw bridge loans.
Chief Financial Officer Patrick Fleury said the results reflected a shift toward “long-term, credit-enhanced revenues.” He added that “more than 50% of first-quarter revenue was derived from HPC hosting.” He also said more capacity should come online through the year.
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