Bitcoin miner TeraWulf intends to offer convertible senior notes to raise $350 million to fund its $200 million share repurchase program.
In a statement released on Wednesday, TeraWulf said that it plans to give initial purchases an option to add $75 million within 13 days after the notes are issued, adding that the convertible notes will mature on Feb. 1, 2030. The firm will disclose the rates at a later date.
TeraWulf is expected to use the proceeds to repurchase the firm’s common stock shares and cover general corporate expenses.
The mining firm detailed in a separate Wednesday statement that its board of directors authorized the company to repurchase up to $200 million of its outstanding shares of common stock through Dec. 31, 2025.
“The share repurchase program reflects the Company’s confidence in its business strategy and financial health,” TeraWulf said. “TeraWulf intends to repurchase shares using excess cash, prioritizing this initiative after disciplined capital expenditures aimed at supporting organic growth in HPC/AI and evaluating strategic opportunities, such as potential site acquisitions.”
The funding plan and the share repurchase program follow TeraWulf’s announcement earlier this month that it sold its 25% equity interest in the Nautilus facility for about $92 million. According to its latest operations update, the firm mined 176 bitcoin in September, down from 184 bitcoin in August.
While many miners saw a substantial decline in revenue following the halving, bitcoin mining difficulty jumped 3.9% to hit an all-time high of 95.7 trillion on Tuesday, with the bitcoin network reaching a record seven-day moving average hash rate of nearly 724 EH/s.
TeraWulf’s stock closed down 1.99% at $6.4 on Wednesday and has risen 178.26% year-to-date, according to Google Finance. It is currently the fifth-largest public bitcoin miner with a market capitalization of $2.44 billion.
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