Crypto miner pivots toward artificial intelligence as it transforms into a next-generation compute infrastructure firm
TeraWulf Inc., a leading U.S. Bitcoin mining company, is preparing to raise $500 million through a convertible note offering to fund the development of a massive AI-ready data center campus in Abernathy, Texas — signaling its most ambitious shift yet toward artificial intelligence infrastructure.
The offering, announced Wednesday, targets qualified institutional investors, with underwriters granted the option to acquire an additional $75 million in notes depending on market demand. The convertible senior notes, due May 1, 2032, will carry no regular interest and can be converted into cash or equity under specified conditions before February 2032.
Proceeds will be used to accelerate construction of the Texas data center and for general corporate purposes.
AI Becomes the New Bitcoin for Miners
TeraWulf’s latest financing effort follows a series of multi-billion-dollar deals that highlight the company’s growing bet on AI. Earlier this year, TeraWulf partnered with Morgan Stanley on a $3 billion debt financing round, with Google providing a $1.4 billion backstop to support expansion into AI data infrastructure.
In August, the miner signed a $3.7 billion hosting agreement with Fluidstack, a cloud-computing firm backed by Google, giving the tech giant a 14% equity stake in TeraWulf.
“AI is becoming the new Bitcoin for large-scale miners,” said Mark Henderson, head of research at BlockView Analytics. “Companies like TeraWulf already control the essential ingredients — power, infrastructure, and scale — that the AI sector desperately needs.”
Institutional Capital Follows the AI Infrastructure Boom
The AI build-out is attracting major institutional investors across the U.S. Earlier this month, Galaxy Digital raised $460 million from a leading asset manager to expand its Helios AI campus in Texas, following a $1.4 billion loan secured in August.
“The race for AI compute capacity has become the next energy-intensive gold rush,” noted Henderson. “Firms that pivot fastest will dominate both AI and blockchain infrastructure.”
TeraWulf’s aggressive capital push reflects a new phase where Bitcoin miners evolve into AI infrastructure providers — turning hash power into compute power for the next technological revolution.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.