Shares of TeraWulf (WULF), a U.S. data center operator focused on Bitcoin mining and artificial intelligence computing, fell early Wednesday after announcing it had raised $900 million in funding.
The company issued 47.4 million shares at $19 per share. WULF fell 5.8% to $19.73 in early trading. The underwriters greenshoeed the option to issue an additional 7 million shares.
Like other AI infrastructure names, WULF has been a strong performer, up more than 50% since the end of March.
Proceeds were earmarked to fund construction of a major data center campus in Hawesville, Kentucky, while repaying outstanding bridge financing and supporting future expansion.
Preliminary first quarter results
In addition to the offering, TeraWulf also released preliminary first-quarter 2026 results. The company expects revenue in the range of $30 million to $35 million. The balance sheet shows cash of $3.1 billion and total debt of $5.8 billion.
Management emphasized that the company is increasingly turning to contract HPC hosting revenue, which now accounts for more than half of total revenue, to provide the business with more stable, longer-term cash flow.
Compass Point analyst Michael Donovan, who has a buy rating on WULF with a $28 price target, noted that the shift to HPC is a positive inflection point for the business, with contract hosting revenue surpassing Bitcoin mining for the first time. He also sees raising capital as a necessary step to unlock the next phase of growth. He acknowledged the dilution but said the additional funding increases visibility on construction of the Kentucky plant, which he expects will be developed in phases based on customer demand. Demand for TeraWulf’s power and hosting capabilities remains strong, he added.
Looking ahead, Donovan expects the company’s revenue profile to change significantly as HPC scales. He predicts that contract escrow will be the main driver of revenue over the next two years, reducing reliance on Bitcoin price fluctuations and supporting a more predictable revenue stream.
The shift reflects broader trends across the industry, as Bitcoin miners increasingly turn to artificial intelligence and high-performance computing infrastructure to diversify revenue streams and improve profit margins.
