Bitcoin Miner TeraWulf Plans $500M Raise for Texas Data Center Project

• TeraWulf’s $500 million raise targets qualified institutional buyers with an option for $75 million more.

• The notes mature in 2032 and convert into cash or shares under specific conditions.

• Proceeds will finance the Texas data center and general corporate needs, building on prior $3 billion efforts with Morgan Stanley and Google.

Discover how TeraWulf’s $500 million convertible note offering fuels its AI data center expansion in Texas. Stay ahead in crypto and AI trends—explore the full impact today.

What is TeraWulf’s $500 Million Convertible Note Offering?

TeraWulf’s $500 million convertible note offering is a private placement aimed at qualified institutional buyers to finance the construction of a new data center campus in Abernathy, Texas. Announced on Wednesday, the deal includes an option for underwriters to buy an additional $75 million in notes within 13 days of issuance. The senior notes, due May 1, 2032, carry no regular interest and allow conversion into cash, TeraWulf shares, or a combination before February 2032, with terms to be finalized through negotiations.

How Does This Fit into TeraWulf’s Pivot Toward AI Infrastructure?

This offering aligns with TeraWulf’s strategic shift from pure crypto mining to AI-focused operations, capitalizing on its established infrastructure. The company has already secured significant backing, including a reported $3 billion debt financing effort with Morgan Stanley and a $1.4 billion commitment from Google to develop AI-ready facilities. In August, TeraWulf signed a $3.7 billion hosting agreement with Fluidstack, an AI infrastructure provider in which Google holds a 14% stake, positioning TeraWulf as a key player in supplying power and space for next-generation computing.

The AI sector’s rapid growth has led to widespread shortages in data centers, GPU availability, and reliable energy sources. Crypto miners like TeraWulf benefit from their pre-existing assets, including secured electricity contracts and scalable facilities, making them ideal for repurposing into high-performance computing environments. According to industry analyses, the global AI data center market is projected to exceed $200 billion by 2030, driven by demand from tech giants and enterprises.

Google’s involvement underscores the credibility of this transition; as a leader in cloud computing and AI, its backstop and stake in related ventures signal strong confidence in TeraWulf’s capabilities. This financing will directly support the Texas project, enhancing the company’s capacity to deliver 100 megawatts or more of IT load for AI workloads, while maintaining its Bitcoin mining roots for diversified revenue.

The latest push follows TeraWulf’s earlier $3 billion financing effort with Morgan Stanley and Google’s $1.4 billion backstop, plus a $3.7 billion hosting deal with Fluidstack.

Crypto mining company TeraWulf plans to raise $500 million through a convertible note offering to help finance construction of a new data center campus in Abernathy, Texas.

The private offering is aimed at qualified institutional buyers, the company announced on Wednesday. It granted underwriters the option to purchase an additional $75 million in notes within 13 days of issuance, depending on market conditions.

The convertible senior notes, due on May 1, 2032, will carry no regular interest, with conversion available only under specific conditions before February 2032. Investors will have the option to convert the notes into cash, TeraWulf shares, or a combination of both, with pricing and conversion terms to be determined through final negotiation.

TeraWulf said proceeds from the raise will go toward funding the Texas data center project and for general corporate purposes.

TeraWulf ended Tuesday up 16%. Source: Google Finance

TeraWulf Pivots Toward AI

The new offering follows recent reports that TeraWulf is working with Morgan Stanley to raise up to $3 billion in debt financing, with Google providing a $1.4 billion backstop, to expand the firm’s AI-ready facilities and strengthen its role in powering next-generation computing.

In August, TeraWulf also inked a $3.7 billion hosting deal with AI infrastructure firm Fluidstack, backed by Google, which acquired a 14% stake in the miner.

The push by TeraWulf comes as the AI boom has created severe shortages of data center space, GPU chips and reliable electricity access. Large crypto mining companies are well-positioned to capitalize on this as they already possess existing data center infrastructure and secured power capacity.

Galaxy Digital Secures $460 Million to Accelerate Texas AI Data Center

Earlier this month, Mike Novogratz’s Galaxy Digital raised $460 million from one of the world’s largest asset managers to expand its Helios AI data center campus in Texas. The deal, involving the purchase of 12.77 million Class A shares at $36 each, aims to deliver 133 megawatts of IT capacity by early 2026.

The funding builds on Galaxy’s $1.4 billion loan secured in August to finance 80% of the Helios buildout. Under a 15-year agreement with CoreWeave, Galaxy will supply compute power for AI and high-performance computing workloads, generating an estimated $1 billion in annual revenue.

Frequently Asked Questions

What Are the Key Details of TeraWulf’s Convertible Note Offering for Its Texas Data Center?

TeraWulf’s $500 million private offering targets institutional buyers, with notes maturing in 2032 and no regular interest. Conversion options include cash or shares, and funds will support the Abernathy campus construction, estimated to boost AI hosting capabilities significantly.

How Is the AI Boom Impacting Crypto Miners Like TeraWulf?

The AI boom is transforming crypto miners by repurposing their energy-intensive infrastructure for high-demand computing tasks. Companies like TeraWulf are securing major deals, such as the $3.7 billion Fluidstack agreement, to provide reliable power and space, ensuring sustainable growth in a competitive market.

Key Takeaways

• TeraWulf’s Strategic Financing: The $500 million raise, plus options for more, directly funds expansion into AI data centers, leveraging partnerships with giants like Google and Morgan Stanley.
• Industry-Wide Shift: Crypto firms are adapting to AI shortages, with secured power and facilities giving them an edge; Galaxy Digital’s $460 million infusion highlights this trend in Texas.
• Future Opportunities: Investors should monitor conversion terms and project timelines, as these deals could drive substantial revenue from AI workloads starting in 2026.

Conclusion

TeraWulf’s $500 million convertible note offering and its broader pivot toward AI infrastructure exemplify how crypto mining leaders are evolving to meet surging data center demands. With backing from Morgan Stanley and Google, alongside peers like Galaxy Digital accelerating Texas projects, the sector is poised for robust growth. As AI adoption accelerates, stakeholders can anticipate innovative financing and partnerships that bridge cryptocurrency and advanced computing—positioning early movers for long-term success.