Shares of TeraWulf Inc. declined after the company priced an upsized $900 million equity offering, increasing the raise from an initial $800 million target.
The firm priced 47.4 million shares at $19 each on April 14, triggering a 6% decline in pre-market trading to about $19.70, after closing the previous session 7.7% higher at $20.95. Despite the drop, the stock remains up roughly 18% over the past six months.
Underwriters were also granted a 30-day option to purchase an additional 7.11 million shares at the same offering price. Morgan Stanley served as lead bookrunning manager, while Cantor Fitzgerald acted as equity capital markets advisor.
Funds Target AI Data Center Construction in Kentucky
TeraWulf said the proceeds from the offering will primarily fund construction of its planned data center campus in Hawesville, Kentucky, supporting expansion into high-performance computing (HPC) and AI infrastructure.
The company also plans to use funds to fully repay outstanding balances under its bridge credit facility. The share offering is expected to close on April 16.
Preliminary Q1 Results Show Near-Breakeven EBITDA
Alongside the capital raise announcement, TeraWulf released preliminary first-quarter results for the period ending March 31. The company expects revenue between $30 million and $35 million, with adjusted EBITDA reaching up to $3 million, reflecting near-breakeven performance.
As of March 31, TeraWulf reported $3.1 billion in cash and equivalents against $5.8 billion in total debt, including $2.5 billion in convertible notes, $3.2 billion in senior secured notes, and $100 million in delayed draw bridge loans.
More than 50% of first-quarter revenue came from HPC hosting, highlighting the company’s strategic shift toward long-term, credit-backed revenue streams and expanded computing capacity through the remainder of the year.
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