TeraWulf to Raise $350 Million for Share Buyback

Mining company TeraWulf will issue convertible senior notes worth $350 million, maturing in February 2030.

The firm will offer buyers an option to purchase an additional $75 million in corporate bonds.

Interest on the notes will be paid annually.

TeraWulf plans to use the funds for a board-approved $200 million share buyback program and for general expenses.

“We have taken decisive steps to strengthen our balance sheet, including fully repaying debt earlier this year, while making significant progress in executing our business strategy. These achievements bolster our confidence in the company’s long-term prospects,” commented TeraWulf CEO Paul Prager.

Over the past 12 months, the company’s stock price has risen approximately 412% — from $1.25 to $6.4 (Nasdaq).

In early October, TeraWulf confirmed its strategy to diversify into AI computing by selling its stake in the Nautilus Cryptomine mining venture in Pennsylvania to fund this new direction. The deal amounted to $92 million.

TeraWulf co-founder and COO Nazar Khan recently noted that AI operators are interested in the competitive advantages of bitcoin miners, considering their existing infrastructure, reliable access to high-speed internet, and cheap electricity.

AI Operators are following this #BitcoinMining theme ?

Given the scale of power that #AI and other forms of #HPC demand these days, AI operators have found that the solution lies in locating their operations where the power exists and using fiber lines to disseminate that… pic.twitter.com/tY6DLcgBNP

— TeraWulf (@TeraWulfInc) October 22, 2024

“The company’s shares have approached a 52-week high, and short sellers have opened numerous short positions on them. It seems they are in serious trouble!” wrote one investor in a comment.

In September, Bernstein analysts concluded that the stock prices of bitcoin miners also developing AI computing are rising faster than those focused solely on cryptocurrency mining.

According to the Bitcoin Policy Institute, the artificial intelligence sector offers 17-25 times greater revenue per kWh compared to cryptocurrency production.