Shares of TeraWulf Inc (NASDAQ:WULF) dropped 5.8% on Friday after the digital infrastructure company revealed that its subsidiary has priced a $3.2 billion offering of senior secured notes.
The company’s fully owned subsidiary, WULF Compute LLC, priced the 7.750% senior secured notes due 2030 at par. The notes will be offered in a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
TeraWulf stated that the net proceeds from the offering will be used to help finance part of its data center expansion at the Lake Mariner campus in Barker, New York. The transaction is scheduled to close on October 23, 2025, subject to market conditions and other customary requirements.
The notes will be guaranteed by WULF Compute’s subsidiaries and secured with first-priority liens on nearly all of WULF Compute’s and the guarantors’ assets, as well as equity interests and other designated collateral.
TeraWulf will also provide completion guarantees for the Lake Mariner expansion, committing to fund WULF Compute as needed to ensure the project is completed on schedule.
Morgan Stanley is serving as the sole bookrunner for the offering.
The company positions itself as a vertically integrated and sustainable digital infrastructure operator and owner.
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