TeraWulf shares fell after the company announced a $900 million equity raise to fund expansion of its AI-focused data centre in Kentucky.
The company priced 47.4 million shares at $19 each, sending the stock down about 5.8% in early trading to roughly $19.73 despite a prior 50% rally since late March.
The proceeds will be used to build out a major campus in Hawesville, repay bridge financing and support future growth in AI and high-performance computing infrastructure.
Preliminary first-quarter results showed revenue of $30 million to $35 million, with a growing contribution from contracted hosting services.
Analyst Michael Donovan said the capital raise, while dilutive, supports TeraWulf’s transition toward more stable, higher-value HPC revenue streams.
The company reported $3.1 billion in cash and $5.8 billion in total debt, underscoring the capital-intensive nature of its expansion strategy.
Management said contracted HPC hosting now accounts for more than half of revenue, marking a shift away from reliance on Bitcoin mining.
The move reflects a broader industry trend of crypto miners pivoting into AI infrastructure to improve margins and reduce exposure to crypto price volatility.
At the time of reporting, Bitcoin price was $75,059.86.