TeraWulf shares fall after upsized $900 million equity raise to fund AI data center buildout

TeraWulf Inc. (WULF) shares slid overnight after the bitcoin miner and high-performance computing host priced an upsized $900 million common stock offering, alongside preliminary first-quarter results that showed near-breakeven adjusted EBITDA.

The stock slipped around 6% to $19.70 in pre-market trading after closing the April 14 session up 7.7% at $20.95, according to The Block’s WULF price page. WULF has gained approximately 18% over the past six months.

The Maryland-based company priced 47.4 million shares at $19 each on April 14, according to a statement. The offering was upsized from an initial $800 million target, with underwriters given a 30-day option to purchase an additional 7.11 million shares at the offering price. Morgan Stanley is acting as lead bookrunning manager, with Cantor Fitzgerald serving as equity capital markets advisor.

TeraWulf said it will use net proceeds to fund construction costs for its planned data center campus in Hawesville, Kentucky, including full repayment of outstanding amounts under its bridge credit facility. The offering is expected to close on April 16.

Separately, the company reported preliminary first-quarter results for the period ended March 31. TeraWulf expects revenue between $30 million and $35 million and adjusted EBITDA of up to $3 million. 

The company said it held $3.1 billion in cash, cash equivalents, and restricted cash as of March 31, against $5.8 billion in total debt. The debt includes $2.5 billion of convertible notes at TeraWulf, $3.2 billion of senior secured notes at WULF Compute LLC, and $100 million of delayed draw bridge loans at its Kentucky subsidiaries.

Chief Financial Officer Patrick Fleury said the company’s preliminary results reflect a transition toward “long-term, credit-enhanced revenues,” adding that more than 50% of first-quarter revenue was derived from HPC hosting and that additional capacity is expected to come online through the year.