TeraWulf stock declines on $900 million share sale to fund AI data center expansion

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email TeraWulf stock declines on $900 million share sale to fund AI data center expansion The shares had been on a big run higher, rising more than 50% since late March. By James Van Straten , Helene Braun | Edited by Stephen Alpher Apr 15, 2026, 1:34 p.m. Make preferred on What to know : TeraWulf (WULF) is lower on Wednesday morning after a $900 million share sale to fund its Kentucky data center buildout. Preliminary first-quarter results show modest revenue of $30 million to $35 million, with an improving shift toward stable HPC hosting income streams. Compass Point analyst Michael Donovan said the results were in line with expectations and that the capital raise, while dilutive, strengthens funding for TeraWulf’s shift toward higher-value HPC revenue. TeraWulf (WULF), a US data center operator focused on bitcoin mining and AI computing, saw its shares drop early Wednesday, after the company announced a $900 million capital raise . The firm priced 47.4 million shares at $19 each. WULF is down 5.8% to $19.73 in early trading. The underwriter greenshoe option is for an additional 7 million shares. Alongside other AI infrastructure names, WULF has been on a scorching run, rising more than 50% since late March. The proceeds are earmarked for funding the construction of a major data center campus in Hawesville, Kentucky, alongside repaying outstanding bridge financing and supporting future expansion. Preliminary Q1 results Alongside the offering, TeraWulf released preliminary first-quarter 2026 results. 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 revenues, which now account for over 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 shift in mix toward HPC as a positive inflection point for the business, with contracted hosting revenue overtaking bitcoin mining for the first time. He also views the capital raise as a necessary step to unlock the next phase of growth. While acknowledging the dilution, he said the added funding improves visibility into the buildout of 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 meaningfully as HPC scales. He forecasts that contracted hosting will become the dominant driver of revenue over the next two years, reducing reliance on bitcoin price swings and supporting a more predictable earnings stream. The shift reflects a broader trend across the industry, as bitcoin miners increasingly pivot toward AI and high-performance computing infrastructure to diversify revenue streams and improve margins. Bitcoin Mining Artificial Intelligence More For You Prediction market volumes to hit $1 trillion by 2030 with Robinhood, Coinbase as key players, Bernstein says By Will Canny , AI Boost | Edited by Aoyon Ashraf 39 minutes ago The broker said prediction markets are scaling into a trillion-dollar asset class, driven by regulatory clarity, crypto rails and distribution via major trading platforms. What to know : Bernstein expects prediction market volumes to hit ~$1 trillion by 2030, up from $51 billion in 2025. Sports leads today, but crypto and macro contracts are set to dominate longer term. Revenues could exceed $10 billion by 2030, with Robinhood and Coinbase emerging as key distribution players, the report said. Read full story Latest Crypto News CoinDesk 20 performance update: AAVE rises 4.3% as trades flat 8 minutes ago Pakistan lifts seven-year ban, allowing banks to service crypto providers 33 minutes ago Prediction market volumes to hit $1 trillion by 2030 with Robinhood, Coinbase as key players, Bernstein says 39 minutes ago Trump-backed WLFI moves to unlock 62 billion tokens after $75 million loan controversy 58 minutes ago Income ETFs could be bitcoin’s volatility kill switch 1 hour ago Bitcoin pulls back as $75,000 remains 'both the milestone and the ceiling' 2 hours ago Top Stories A new class of crypto treasury companies is forming around Strategy’s high-yield stock 3 hours ago Bitcoin developers are trying to build quantum defenses. Your coins could pay the price. 7 hours ago Why this ex-Solana exec is using a Wall Street trick to level the playing field in DeFi 3 hours ago The 100% debt trap: Why the IMF’s latest warning is a massive long-term signal for bitcoin 2 hours ago EToro to acquire crypto wallet Zengo in $70 million deal 4 hours ago The next Fed chair has crypto exposure in his portfolio. Here are the details 18 hours ago