TeraWulf (WULF), an American data center operator focused on bitcoin mining and artificial intelligence computing, saw its shares fall early Wednesday after the company announced a $900 million capital raise.
The company priced 47.4 million shares at $19 each. WULF is down 5.8% to $19.73 in early trading. The underwriter’s greenshoe option is for an additional 7 million shares.
Along with other AI infrastructure names, WULF has been on a scorching hot streak, rising more than 50% since the end of March.
Proceeds are intended to fund construction of a major data center campus in Hawesville, Kentucky, as well as repay outstanding bridge financing and support future expansion.
Preliminary first quarter results
In addition to the offering, TeraWulf released preliminary results for the first quarter of 2026. The company expects revenue between $30 million and $35 million. The balance sheet showed $3.1 billion in cash and $5.8 billion in total debt.
Management highlighted a growing shift toward contracted HPC hosting revenue, which now accounts for more than half of total revenue, positioning the business for more stable, long-term cash flows.
Compass Point analyst Michael Donovan, who has a Buy rating and a $28 price target on WULF, pointed to the mix’s shift toward HPC as a positive inflection point for the business, as contracted hosting revenue surpassed bitcoin mining for the first time. It also considers that the capital increase is a necessary step to unlock the next phase of growth. While he acknowledged the dilution, he said the additional funding improves construction visibility at the Kentucky site, which he expects to be developed in phases based on customer demand. He added that demand for TeraWulf’s power and hosting capacity remains strong.
Looking ahead, Donovan expects the company’s revenue profile to change significantly as HPC grows. It forecasts that contracted hosting will become the dominant revenue driver over the next two years, reducing reliance on bitcoin price swings and supporting a more predictable profit stream.
The shift reflects a broader trend across the industry, as bitcoin miners increasingly pivot to artificial intelligence and high-performance computing infrastructure to diversify revenue streams and improve margins.
