Bitcoin Miner TeraWulf Announces Proposed $350 Million Via Convertible Notes Offering

Bitcoin mining company TeraWulf has announced its plans to generate $350 million through a private offering of convertible senior notes due in 2030.

TeraWulf noted that this move will support its share repurchase program geared at $200 million. The offering will grant initial buyers of the note an option to purchase, which extends to $75 million within 13 days following the issuance of the notes.

Terawulf Declares Private Offering For Convertible Notes

In a blog post, the prominent Bitcoin mining firm TeraWulf disclosed a private offering of its senior convertible notes. The company noted its aim of raising $350 million from the offering, with the notes due in 2030.

Further, TeraWulf said it will use part of the proceeds for its share repurchase program and allocate some of the generated funds to the company's general corporate expenses.

Moreover, the company disclosed thatinitial buyers can purchase an additional $75 million within 13 days from the date the convertible notes are first issued.

The company added that the convertible notes offering is subject to market and other conditions. However, it gave no specific indication regarding when or the terms of the offering.

Meanwhile, the mining firm stated that its board of directors endorsed repurchasing about $200 million in shares. This buyback program will extend to December 31, 2025.

A part of its statement reads: The share repurchase program reflects the company's confidence in its business strategy and financial health. TeraWulf intends to repurchase shares using excess cash, prioritizing this initiative after disciplined capital expenditures to support organic growth in HPC/AI and evaluate strategic opportunities, such as potential site acquisitions."

TeraWulf Includes Move To Boost its Bitcoin Mining, Revenue, And AI Centers

The mining firm TeraWulf develops and runs environmentally sustainable data-based infrastructure in the US. It focuses on Bitcoin mining and high-performance computation.

Moreover, the company has diversified its operations to include AI-based data centers. Earlier this month, TeraWulfsoldits 25% stake in the Nautilus facility for $92 million.

It channeled the proceeds to Lake Marine, its New York-based facility that hosts PC/AI data centers and BTC mining.

Recently, TeraWulf released its September 2024 Production and Operation Update. According to the details, the company mined 176 BTC tokens in September, down from 184 BTC in August.

Moreover, the firm reported an operational self-mining capacity of almost 10EH/s in September, a 100% increase year over year.

TeraWulf also disclosed its development strategy to boost its mining products. This includes large-scale PSU replacements and ventilation upgrades in its miner building 3 MB-3" to improve performance as cooler fall temperatures arrive.

Meanwhile, TeraWulf stands as the fifth-largest public Bitcoin mining firm. It boasts a market cap of over $2.44 billion and about $0.12 billion in revenue.

According to data from Google Finance, the company's stock, WULF, has recorded over 170% increase YTD. On Wednesday, it closed at $6.4 following a 1.99% decline.

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