Bitcoin miner TeraWulf raises $32 million for debt restructuring

American mining firm TeraWulf raised $32 million through a stock offering. The move aligns with a legally binding agreement with creditors to restructure the debt.

$2.5 million was provided by co-founders Paul Prager and Nazar Khan. The first also serves as CEO, the second — COO.

“We are confident in our ability to attract additional funds needed to ease the debt burden,” Prager said.

With the funds, the company expects to generate positive cash flow in 2023 to finance the Lake Mariner (110 MW) and Nautilus Cryptomine (50 MW) projects and to achieve other corporate objectives.

Debt restructuring through April 2024 will replace the amortization of the term loan with a mechanism for reallocating free cash flows. A key condition is that TeraWulf raise the required amount of equity by March 15.

In December the company raised $10 million through a $6.7 million offering of common stock and the issue of convertible notes for $3.4 million, and in October — $17 million in the form of stock and debt financing.