TeraWulf (NASDAQ:WULF) shares fell 6.6% to $19.45 in premarket trading on Wednesday after the company unveiled plans for an $800 million equity offering and released preliminary first-quarter figures that missed analyst expectations.
The Maryland-based data centre infrastructure group said proceeds from the share sale will be used in part to fund development of a new facility at its Hawesville, Kentucky site. The capital will also go toward repaying its existing credit facility in full, supporting potential acquisitions, and covering general corporate expenses.
Morgan Stanley has been appointed as lead bookrunner for the transaction, while Cantor Fitzgerald is acting as capital markets adviser.
TeraWulf also provided an early look at its first-quarter performance, forecasting revenue in the range of $30 million to $35 million and adjusted EBITDA between $0 million and $3 million. The company reported cash holdings of $3.1 billion as of March 31.
The preliminary results fell short of market forecasts, with analysts previously expecting revenue of around $40 million and adjusted EBITDA of $8.8 million.