TeraWulf Inc. (WULF), a leading provider of digital infrastructure for cryptocurrency mining, saw its stock soar 7.73% on Thursday, following the company's announcement of a successful $500 million offering of 2.75% Convertible Senior Notes due 2030.
The capital raise provides TeraWulf with additional financial resources to fuel its growth strategies and expand its operations. The company plans to use the net proceeds of approximately $487.1 million for various purposes, including working capital needs, strategic acquisitions, and the expansion of its data center infrastructure to support high-performance computing activities.
In conjunction with the offering, TeraWulf entered into capped call transactions with a cap price of $12.80, representing a 100% premium over the last reported sale price. The company also repurchased $115 million of its common stock, effectively reducing potential dilution from the convertible notes issuance.
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