TeraWulf stock declines on $900 million share sale to fund AI data center expansion

TeraWulf (WULF), a US data center operator involved in bitcoin mining and AI computing, experienced a stock decline following the announcement of a $900 million capital raise. The company priced 47.4 million shares at $19 each, with an option for an additional 7 million shares. The funds are intended for constructing a data center campus in Hawesville, Kentucky, repaying bridge financing, and supporting future expansion. This capital raise comes after WULF's stock had surged over 50% since late March. Preliminary Q1 2026 results indicate expected revenue between $30 million and $35 million, with $3.1 billion in cash and $5.8 billion in total debt. Management highlighted a significant shift towards contracted High-Performance Computing (HPC) hosting revenues, which now constitute over half of total revenue, promising more stable, long-term cash flows. Analysts view this shift and the capital raise as positive steps for growth, enhancing visibility for the Kentucky site development and meeting strong demand for power and hosting capacity.

(Source：CoinDesk)