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TeraWulf Launches $500 Million Convertible Notes to Fund Google-Backed Texas AI Build

The raise follows a 25-year, $9.5 billion Fluidstack venture that secures long-term hosting revenue at TeraWulf’s 168 MW Abernathy campus.

Overview

  • TeraWulf announced a private offering of $500 million in convertible senior notes due 2032, with an option for an additional $75 million available to initial purchasers.
  • The notes will be sold to qualified institutional buyers, pay no regular interest, and may be settled in cash, stock, or a combination at the company’s election.
  • The financing supports a joint venture with Fluidstack that carries about $9.5 billion in contracted revenue over 25 years and gives TeraWulf a 51% stake and rights to co-develop the next ~168 MW project.
  • Google is backing roughly $1.3 billion of Fluidstack’s long-term lease obligations tied to the project, which is already under construction and targeting commercial operations in the second half of 2026.
  • The deal expands TeraWulf’s contracted HPC capacity to over 510 MW and follows a sharp stock jump on the JV news and a modest pullback after the notes offering, as investors weigh costs, dilution, and execution timelines.