TeraWulf's Stock Falls Despite Convertible Notes Offering and Google Partnership Expansion.

TeraWulf Inc. (WULF) stock fell 1% pre-market despite announcing a $400 million private offering of convertible senior notes and expanding its partnership with Alphabet's Google division, increasing its debt backstop to $3.2 billion. The company's contracted IT load reached 360 megawatts, representing $6.7 billion in secured revenue with potential to reach $16 billion through lease extensions. B. Riley Securities raised its price target from $8 to $14, citing stronger revenue visibility and expanded partnerships.

TeraWulf Inc. (WULF) stock experienced a 1% decline in pre-market trading on Tuesday, despite significant announcements. The company's shares dipped to $9.34 in the extended trading session, despite announcing a $400 million private offering of convertible senior notes due 2031. The offering includes an initial purchase of $400 million with an option to acquire an additional $60 million, bringing the total potential offering to $460 million [1].

The notes are structured as senior unsecured obligations, paying semiannual interest beginning March 1, 2026, and maturing September 1, 2031. TeraWulf plans to use the proceeds primarily for capped call transactions designed to reduce dilution from potential note conversions [1].

Additionally, Alphabet Inc.'s Google division expanded its financial commitment to TeraWulf by an additional $1.4 billion, raising its total debt backstop to $3.2 billion. This increased backing coincides with Fluidstack’s expansion at TeraWulf’s Lake Mariner data center campus in Western New York. Google secured warrants to purchase 32.5 million TeraWulf shares, expanding its pro forma equity stake to approximately 14% [1].

TeraWulf’s contracted IT load reached 360 megawatts, representing $6.7 billion in secured revenue with potential to reach $16 billion through lease extensions. The company signed two 10-year high-performance computing colocation agreements with Fluidstack, locking in approximately $3.7 billion in contracted revenue [2].

B. Riley Securities raised its price target from $8 to $14, citing stronger revenue visibility and expanded partnerships. TeraWulf reported second-quarter results beating expectations with a 5-cent per share loss versus the 7-cent forecast, while sales reached $47.64 million above the $46.08 million estimate [1].

Despite the after-hours decline of 1.08%, the crypto miner gained 65.72% year-to-date and surged over 72.11% in the past five days following the Google partnership announcement. The stock jumped more than 40% during Thursday’s midday trading session, reflecting strong investor confidence in the company’s AI infrastructure positioning [1].

The stock has been volatile, trading between $9.30 and $10.71 during the day. Price action: TeraWulf Inc. shares closed 4.57% higher at $9.38 during regular trading hours on Monday [1].

References:
[1] https://www.benzinga.com/markets/equities/25/08/47203276/terawulf-stock-falls-1-pre-market-despite-convertible-notes-offering-google-partnership-expansion
[2] https://mlq.ai/news/terawulf-signs-200-mw-10-year-ai-hosting-agreements-with-fluidstack-and-google/