TeraWulf Launches $900 Million Equity Offering to Accelerate AI Infrastructure Pivot

TeraWulf (WULF) announced a $900 million capital raise on Wednesday, pricing 47.4 million shares at $19 per share. The announcement led to an immediate 5.8% decline in share price to $19.73, as investors reacted to the equity dilution. The offering includes an underwriter greenshoe option for an additional 7 million shares. The proceeds are primarily earmarked for the construction of a major data center campus in Hawesville, Kentucky. Additionally, the company intends to use the funds to repay outstanding bridge financing and support broader expansion efforts. This follows a strong rally for the stock, which has risen over 50% since late March. In accompanying preliminary Q1 2026 results, TeraWulf projected revenue between $30 million and $35 million. The company's balance sheet currently reflects $3.1 billion in cash against $5.8 billion in total debt. Crucially, management noted that contracted HPC hosting now accounts for more than 50% of total revenue, marking a transition away from a pure-play Bitcoin mining model toward more stable, long-term cash flows. Compass Point analyst Michael Donovan maintains a Buy rating and a $28 price target, arguing that the shift toward HPC is a positive inflection point. While acknowledging the dilution, Donovan suggests the funding provides necessary visibility for the Kentucky buildout, which will be developed in phases based on demand. This pivot mirrors a wider industry trend where crypto miners leverage power capacity to enter the AI and GPU infrastructure market.