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TeraWulf issues $850 million convertible bonds with a coupon Intrerest Rate of 1% and a conversion premium of 32.5%.
[Golden Finance] Nasdaq-listed Bitcoin mining company TeraWulf announced today that it has determined the offering size and issuance price of its proposed 1.00% Convertible Bond due in 2031 (hereinafter referred to as "Convertible Bond"). The total principal amount of the bond is $850 million. This Convertible Bond will be issued through a private sale, with the subscription target being qualified institutional investors as defined under the amended Rule 144A of the Securities Act of 1933.
Issuance of $850 million principal amount Convertible Preferred Bonds with a coupon rate of 1.00% (conversion premium rate of 32.50%), entering into a capped option trading agreement for Convertible Bonds maturing in 2031 with a coupon rate of 1.00%, with an initial cap price of $18.76 per share of common stock, representing a 100% premium over the closing price of TeraWulf common stock on August 18, 2025.
TeraWulf has granted the initial purchasers of the Convertible Bond a 13-day option that allows them to purchase additional Convertible Bonds for a total principal amount not exceeding $150 million. The issuance is expected to be completed on August 20, 2025, subject to the satisfaction of customary closing conditions.