TeraWulf Plans $350 Million Convertible Notes Offering

Bitcoin miner TeraWulf intends to offer convertible senior notes to raise $350 million to fund its $200 million share repurchase program.

In a statement released on Wednesday, TeraWulf announced that it plans to give initial purchasers the option to add an additional $75 million within 13 days after the notes are issued, with the convertible notes maturing on Feb. 1, 2030. The firm will disclose the rates at a later date.

The proceeds are expected to be used for repurchasing the firm's common stock shares and covering general corporate expenses.

The mining company also detailed that its board of directors authorized a repurchase of up to $200 million of the outstanding shares of common stock through Dec. 31, 2025.

> “The share repurchase program reflects the Company’s confidence in its business strategy and financial health,” TeraWulf stated. “TeraWulf intends to repurchase shares using excess cash, prioritizing this initiative after disciplined capital expenditures aimed at supporting organic growth in HPC/AI and evaluating strategic opportunities, such as potential site acquisitions.”

This funding plan follows TeraWulf’s announcement earlier this month that it sold its 25% equity interest in the Nautilus facility for about $92 million. According to its latest operations update, the firm mined 176 bitcoin in September, down from 184 bitcoin in August.

While many miners experienced significant revenue declines following the halving, bitcoin mining difficulty surged 3.9%, hitting an all-time high of 95.7 trillion on Tuesday, with the bitcoin network reaching a record seven-day moving average hash rate of nearly 724 EH/s.

TeraWulf’s stock closed down 1.99% at $6.4 on Wednesday, though it has risen 178.26% year-to-date, according to Google Finance. The company is currently the fifth-largest public bitcoin miner, with a market capitalization of $2.44 billion.