TeraWulf to Raise Funds for Texas Data Center Expansion
Crypto mining firm TeraWulf is gearing up to raise $500 million through a private convertible note offering to fund the construction of a new data center campus in Abernathy, Texas. The company said the offering targets qualified institutional buyers, with an option for underwriters to purchase an additional $75 million in notes within 13 days of issuance, depending on market conditions.
The convertible senior notes, set to mature on May 1, 2032, will carry no regular interest. Conversion will be allowed only under certain conditions before February 2032. Investors can choose to convert the notes into cash, TeraWulf shares, or a mix of both, with pricing and conversion details to be finalized later. Proceeds will support the Texas expansion and other general corporate purposes.
Building on Major Financing Partnerships
This fundraising push adds to a series of large-scale financing efforts by TeraWulf in recent months. The company has reportedly been working with Morgan Stanley to secure up to $3 billion in debt financing, backed by a $1.4 billion commitment from Google. The funds are aimed at expanding TeraWulf’s AI-ready data centers and strengthening its position in the high-demand computing sector.
TeraWulf has also entered into a $3.7 billion hosting agreement with Fluidstack, an AI infrastructure company supported by Google. As part of that deal, Google acquired a 14% stake in the miner, signaling strong institutional confidence in TeraWulf’s pivot toward supporting artificial intelligence workloads.
From Mining Bitcoin to Powering AI Compute
TeraWulf’s latest move reflects a growing trend among large-scale crypto miners to reposition themselves as infrastructure providers for AI and high-performance computing. The ongoing AI boom has triggered shortages in data center space, high-end GPU chips, and reliable power supply—areas where miners like TeraWulf already hold key advantages.
By repurposing or expanding existing mining facilities, companies can quickly adapt to meet demand from AI developers and cloud computing firms seeking efficient, power-dense environments for training large models. TeraWulf’s Texas facility is expected to play a central role in this transition, serving as a cornerstone for its AI-focused strategy.
Texas Becomes a Hotbed for AI-Driven Infrastructure
TeraWulf’s Texas expansion aligns with a broader trend of major players investing heavily in the state’s data center ecosystem. Earlier this month, Mike Novogratz’s Galaxy Digital raised $460 million from one of the world’s largest asset managers to grow its Helios AI data center campus, also located in Texas.
The funding, which involved the sale of 12.77 million Class A shares at $36 each, will support the delivery of 133 megawatts of IT capacity by early 2026. Galaxy’s efforts follow its $1.4 billion loan secured in August to cover 80% of the Helios buildout costs. Under a 15-year partnership with CoreWeave, Galaxy will provide computing power for AI and high-performance workloads—an arrangement expected to generate around $1 billion in annual revenue once fully operational.
AI Boom Reshaping Digital Infrastructure Investment
The rapid growth of artificial intelligence has spurred a new wave of investment in data center infrastructure, driving crossover interest from the cryptocurrency sector. As traditional data center operators struggle to keep up with demand, mining firms with access to large-scale power and existing infrastructure have found themselves in a unique position to adapt.
TeraWulf’s $500 million offering marks another step in its transformation from a crypto miner into a broader digital infrastructure company. The Texas project, backed by a network of institutional investors and technology partners, is expected to position TeraWulf as a key player in the next generation of computing infrastructure.
If successful, the new facility could bolster the company’s role in supplying the power and compute backbone needed to sustain AI innovation at scale.
