TeraWulf to Raise $500 Million for Texas Data Center Construction

TeraWulf to raise $500 million for Texas data center construction.

Publicly traded mining company TeraWulf will conduct a private placement of convertible notes worth $500 million, maturing in 2032. The funds will be allocated for the construction of a new data center campus in Texas and general corporate purposes.

Underwriters will also have an option to purchase notes worth $75 million within 13 days of issuance.

The Texas project will mark one of TeraWulf’s largest expansions in the United States. The company is already engaged in sustainable mining and HPC in New York and Pennsylvania.

Following the announcement, the company’s shares fell nearly 4% to $15.32.

Shift to AI

TeraWulf is steadily increasing funding as part of its business reorientation. In October 2024, the firm issued $350 million in convertible senior notes to diversify into AI computing.

In August 2025, the company signed a 10-year contract with the cloud AI platform Fluidstack, supported by Google. The miner committed to providing approximately 250 MW, valued at $3.7 billion.

In September, the company announced raising $3 billion with Morgan Stanley’s assistance for data center construction.

Other market participants have followed a similar strategy. The largest deal in this direction was the acquisition in July of mining center operator Core Scientific by AI hyperscaler CoreWeave for $9 billion.

Miner IREN also announced the expansion of its AI Cloud computing division. The company invested approximately $193 million in Nvidia Blackwell B200 GPUs.

In October, CleanSpark declared a shift from “pure cryptocurrency mining” to HPC. Meanwhile, former Bitcoin miner Crusoe raised $1.3 billion to develop AI infrastructure for OpenAI.

Over the past year, the total debt of crypto miners increased sixfold—from $2.1 billion to $12.7 billion. Analysts at VanEck attributed this to the simultaneous need to invest in mining equipment and fulfill AI-related orders.