Terawulf Raises $425M in Convertible Notes, to Buy Back Shares with $118M

UPDATE: Terawulf announced on Thursday the increase and pricing of its 2.75% convertible notes, now totaling $425 million. It plans to use $115 million of the proceeds for share buybacks.

Bitcoin mining firm Terawulf has proposed a private offering of convertible notes to raise $350 million in a bid to repurchase its outstanding shares for up to $200 million.

Terawulf announced on Wednesday that it would also grant the initial purchasers of the notes an option to add $75 million within 13 days after the notes are issued. The company has yet to finalize the pricing and interest rate of the offering but stated that the notes would be due in 2030.

Terawulf intends to use the proceeds from the offering for general corporate purposes and to repurchase its outstanding common stocks for up to $200 million through December 2025.

In another announcement on Wednesday, Terawulf said it would prioritize the share repurchase initiative after “disciplined capital expenditures aimed at supporting organic growth in HPC/AI and evaluating strategic opportunities, such as potential site acquisitions.”

Since June, public mining companies have increasingly turned to convertible notes and Bitcoin-backed loans to raise cash as the halving squeezed Bitcoin’s hashprice to historical lows.

Companies like Hut 8 (NASDAQ: HUT), Bitdeer (NASDAQ: BTDR), MARA, and Core Scientific (NASDAQ: CORZ) have issued $1 billion worth of convertible notes for growth initiatives, purchasing Bitcoin, or replacing existing debts with lower interest rates.

Terawulf’s stock price rallied by nearly 30% over the last five trading days ahead of the share repurchase announcement on Wednesday, significantly outperforming Bitcoin and other mining stocks. The trading volume of its shares increased notably on Monday.