TeraWulf Launches $9.5B Google-Backed Fluidstack AI Venture as Shares Surge
TeraWulf will raise up to $575 million via convertible senior notes to help fund its Google-backed $9.5B Fluidstack joint venture for a Texas AI data center.
TeraWulf plans to raise up to $575 million through a private sale of convertible senior notes, including $500 million due 2032 and a $75 million option, to finance construction of a 168 MW AI data center in Abernathy, Texas. The project is part of a $9.5 billion joint venture with Fluidstack, backed by Google's $1.3 billion guarantee on long-term lease obligations. The notes pay no regular interest and can be converted into cash, stock, or both. Shares dipped 5% in premarket trading following a 17% gain the previous day. A similar $850 million raise occurred two months ago for data center expansion.
- Joint Venture: A business arrangement where two or more parties collaborate to develop a specific project, sharing resources, risks, and profits.
- Artificial Intelligence (AI): The simulation of human intelligence in machines, enabling them to perform tasks like reasoning, learning, and problem-solving.
- Convertible Senior Notes: Debt securities that can be converted into a predetermined amount of the issuing company's equity, typically ranking above other debts in repayment priority.