TeraWulf Shares Drop 5.8% Following $900 Million Capital Raise
TeraWulf (WULF) fell 5.8% after announcing a $900 million capital raise to fund a new data center in Kentucky. The shift to high-performance computing (HPC) revenue aims to diversify income and stabilize cash flow.
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TeraWulf has raised $900 million by issuing 47.4 million shares at $19 each, leading to a 5.8% decline in its stock price to $19.73. The funding will support the construction of a data center in Hawesville, Kentucky, repay short-term debts, and facilitate future growth.
Preliminary first-quarter 2026 revenue is projected between $30 million and $35 million, with a balance sheet showing $3.1 billion in cash and $5.8 billion in debt. The company reports that HPC hosting revenues now exceed half of total income, indicating a strategic shift that may provide more stable earnings and reduce dependence on bitcoin prices. This trend reflects a broader industry movement towards AI and HPC.
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