The U.S.-based Bitcoin mining firm TeraWulf is planning to raise $400 million to expand its data center business.

On August 19th, the U.S.-listed Bitcoin mining firm TeraWulf (with the stock code: WULF) declared its intention to raise $400 million through a private placement of convertible senior notes. This fundraising move took place as its AI cloud service customer, Fluidstack, decided to increase its leasing of 160 megawatts of power capacity at the Lake Mariner campus in New York State. According to a statement issued on Monday, these convertible notes encompass a $60 million over-allotment option granted to the initial buyers, and the funds will be utilized for covered call options trading and the expansion of the non-mining data center business. The notes are unsecured senior notes and will accrue interest semi-annually starting from March 1, 2026, and mature on September 1, 2031. Upon obtaining shareholder approval, TeraWulf has the option to settle conversions in cash, stock, or a combination thereof. This financing represents TeraWulf's accelerated entry into the high-performance computing field beyond Bitcoin mining. Earlier this month, the company signed two 10-year hosting agreements with the AI high-performance computing provider Fluidstack. Google provided a $1.8 billion leasing guarantee for this and acquired an 8% stake in TeraWulf.