TeraWulf Increases Funding for Large-Scale Development of Data Centers in the U.S.
This is reported by Finway
- TeraWulf is raising $900 million through a private placement of convertible bonds.
- The funds will be used for the construction of a data center campus in Abernathy, Texas, as well as for corporate needs.
- Leading miners are increasingly investing in high-performance computing and AI infrastructure.
Business Diversification Strategy and Financing Terms
American company TeraWulf announced an increase in the size of its private offering of convertible bonds maturing in 2032 to $900 million. The funds raised are intended for the construction of a large data center in Abernathy, Texas, as well as for financing general corporate goals, including further development of artificial intelligence infrastructure.
Initially, the company planned to raise $350 million, but due to increased investor interest, the offering size was expanded. Investors have been granted a 13-day option to purchase additional bonds worth up to $125 million. The bonds feature a conversion premium of 37.5% relative to the stock closing price at the time of issuance, setting the initial conversion price at $19.90 per share.
The bonds are senior unsecured, and upon conversion, they are paid in cash. The remainder may be redeemed in cash, stock, or a combination thereof at the company’s discretion. The net amount raised is approximately $877.6 million, and if the Greenshoe option is fully exercised, this amount could reach nearly $1 billion.
Industry Investments in AI and High-Performance Computing
TeraWulf is among the leading Bitcoin miners rapidly adapting to new market trends by increasing investments in data centers for artificial intelligence (AI) and high-performance computing (HPC). According to JPMorgan analytics, public cryptocurrency mining companies are increasingly evaluated based on their modern AI infrastructure rather than just the value of digital assets.
Other key industry players are also expanding investments in AI. Specifically, Core Scientific signed an agreement with CoreWeave for the acquisition of 200 MW of capacity. In July 2025, it was announced that CoreWeave intends to acquire Core Scientific for $9 billion. Bitdeer is developing its own AI solutions, CleanSpark plans to build data centers to support artificial intelligence, and Iris Energy is actively expanding cloud GPU services for AI-based technologies.
Bitcoin miner MARA, for its part, is using zero-coupon convertible bonds to acquire assets and restructure debt while maintaining a focus on cryptocurrency and corporate treasury.
“The expansion of the private bond offering strengthens the company’s strategy for developing AI infrastructure and accelerating business growth,” stated TeraWulf representatives.
The company previously announced the establishment of a joint venture with Fluidstack worth $9.5 billion, focused on hosting computing for AI. This further underscores TeraWulf’s strategic direction towards diversification and integration of cutting-edge technologies into its business model.
Meanwhile, discussions regarding the regulation of mining activities continue in the U.S.: recently, New York authorities proposed implementing a mining tax due to rising energy consumption.