TeraWulf (NASDAQ: $WULF) has announced plans to raise $900 million U.S. to fund its artificial intelligence (A.I.) data centre expansion.
The stock of TeraWulf is down 6% on news of the capital raise, which will come from issuing additional shares, a move that dilutes existing stockholders.
Management at TeraWulf, which runs Bitcoin (CRYPTO: $BTC) mining and A.I. computing operations, said the capital raise is necessary to fund its expansion plans.
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The Maryland-based company priced 47.4 million shares at $19 U.S. each as part of the stock sale.
TeraWulf plans to build a new A.I. data centre campus in Kentucky, alongside repaying outstanding bridge financing and supporting future expansion of the site.
The company is one of several Bitcoin miners that is turning to A.I. computing as cryptocurrency prices languish.
Management at TeraWulf cited a growing shift toward contracted high-performance computing (HPC), which now accounts for over half the company’s annual revenues.
A.I. data centres are viewed as a more stable and reliable long-term business than Bitcoin mining, which is subject to price volatility.
Despite the pullback on April 15, WULF stock is up 55% year-to-date and trading at $19.76 U.S. per share.
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