TeraWulf Inc. shares slid during pre-market trading on April 15 after the Maryland-based bitcoin miner priced an upsized $900 million common stock offering. According to reporting from The Block, the company's stock fell roughly 6% to $19.70, following a previous close of $20.95.
The company priced 47.4 million shares at $19 each on April 14. This move increased the total offering from an initial $800 million target. Underwriters also hold a 30-day option to purchase an additional 7.11 million shares at the same price.
TeraWulf intends to use the net proceeds to cover construction costs for its upcoming data center campus in Hawesville, Kentucky. The company also plans to use the funds for the full repayment of outstanding amounts under its bridge credit facility. The offering is expected to close on April 16.
Financials and HPC transition
Alongside the equity raise, TeraWulf released preliminary first-quarter results for the period ending March 31. The outlet reported that the company expects revenue between $30 million and $35 million, with an adjusted EBITDA of up to $3 million.
As of March 31, the company held $3.1 billion in cash, cash equivalents, and restricted cash. This stands against a total debt load of $5.8 billion. This debt includes $2.5 billion in convertible notes, $3.2 billion in senior secured notes at WULF Compute LLC, and $100 million in delayed draw bridge loans for its Kentucky subsidiaries.
Chief Financial Officer Patrick Fleury stated that the preliminary results reflect a transition toward "long-term, credit-enhanced revenues." Fleury added that more than 50% of first-quarter revenue was derived from high-performance computing (HPC) hosting, with more capacity expected to come online throughout the year.
