TeraWulf Taps Institutional Investors For $500M To Fuel Data Centre Growth

• TeraWulf plans to give initial note purchasers an option to buy an additional $75 million in notes within 13 days of issuance.
• The funds raised are expected to help finance the construction of a new data center campus in Abernathy, Texas.
• Citizens JMP increased its price target for TeraWulf to $22 from $18, maintaining an ‘Outperform’ rating.

TeraWulf Inc. (WULF) announced on Wednesday its plans to raise $500 million through a private offering of convertible senior notes due in 2032, targeting institutional investors under Rule 144A of the Securities Act of 1933.

Following the announcement, TeraWulf stock traded over 2% lower in Wednesday’s premarket and was the third-most trending equity ticker on Stocktwits. Retail sentiment around the stock jumped to ‘bullish’ from ‘bearish’ territory the previous day. Message volume improved to ‘extremely high’ from ‘low’ levels in 24 hours. 

Funding Expansion Efforts

The company plans to give initial note purchasers an option to buy an additional $75 million in notes within 13 days of issuance. The funds raised are expected to help finance the construction of a new data center campus in Abernathy, Texas, announced on Tuesday and support other corporate initiatives.

TeraWulf has expanded its high-performance computing (HPC) operations through a 25-year joint venture agreement with Fluidstack, totaling $9.5 billion. 

The new debt will be senior unsecured obligations and will not accrue regular interest. The notes are set to mature on May 1, 2032, unless converted, redeemed, or repurchased earlier under the terms of the offering.

Price Target Hiked

Citizens JMP has increased its price target for TeraWulf to $22 from $18, maintaining an ‘Outperform’ rating following the company’s latest expansion initiative in Texas, according to TheFly. 

The firm cited that TeraWulf’s participation in the Texas project positions it as an integral player in the emerging AI infrastructure race. The development is seen as a potential model for future partnerships. 

TeraWulf stock has gained 181% in 2025 and 138% over the last 12 months. 

Also See:What’s Fueling The Big Rally In CMBM Stock Today?

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