TeraWulf Inc. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

TeraWulf Inc. (NASDAQ: WULF) announced an underwritten public offering of its common stock, intending to use the net proceeds for mining operations, digital asset infrastructure, working capital, and general corporate purposes. The company will also allow the underwriter a 30-day option to purchase an additional 15% of the shares offered. Existing investors, including CEO Paul Prager, plan to buy $5 million worth of shares at $7.88 each. This offering follows a shelf registration statement declared effective by the SEC.

Positive

• Intended use of proceeds for mining operations and digital asset infrastructure.
• Existing investors, including CEO, committed to purchasing $5 million in shares.

Negative

• Potential dilution of shares due to new stock offering.

EASTON, Md., April 11, 2022 /PRNewswire/ -- TeraWulf Inc. (NASDAQ: WULF) ("TeraWulf" or the "Company"), which owns and operates fully integrated environmentally clean bitcoin mining facilities in the United States, today announced that it is commencing an underwritten public offering of its common stock (the "Offering"). TeraWulf also expects to grant to the underwriter for the Offering a 30-day option to purchase up to an additional 15% of the number of shares of common stock offered in the public offering. All of the shares to be sold in the Offering will be sold by TeraWulf, subject to customary closing conditions. TeraWulf intends to use the net proceeds from the Offering for mining operations and digital asset infrastructure and for working capital and general corporate purposes. Certain of TeraWulf's existing investors, including the Company's Chief Executive Officer Paul Prager, have agreed to purchase $5,000,000 of shares of the Company's common stock, at a price of $7.88 per share (the last reported sale price of the common stock on the Nasdaq on April 8, 2022) in a private offering, which is expected to close prior to or concurrently with the closing of the Offering.

Cantor Fitzgerald & Co. is acting as sole book-running manager for the Offering.

The Offering is being made pursuant to a shelf registration statement (File No. 333-262226) declared effective by the Securities and Exchange Commission ("SEC") on February 4, 2022. A preliminary prospectus supplement relating to the Offering will be filed with the SEC. The securities may be offered only by means of a written prospectus, including a prospectus supplement, forming a part of the effective registration statement. When available, copies of the preliminary prospectus supplement and accompanying base prospectus relating to the Offering may be obtained from the SEC at http://www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the accompanying prospectus relating to the Offering can be obtained, when available, from Cantor Fitzgerald & Co., Attn: Capital Markets, 499 Park Avenue, 6th floor, New York, NY 10022; Email: prospectus@cantor.com. The final terms of the Offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. 

About TeraWulf 

TeraWulf (Nasdaq: WULF) was formed by an experienced group of energy entrepreneurs to own and operate fully integrated environmentally clean bitcoin mining facilities in the United States. The Company is developing two mining facilities, Lake Mariner in New York and Nautilus Cryptomine in Pennsylvania, with the objective 800 megawatts of mining capacity deployed by 2025, enabling over 23 exahash per second of expected hashrate. TeraWulf will generate domestically produced bitcoin powered by nuclear, hydro and solar energy with a goal of utilizing 100% zero-carbon energy. With a core focus of ESG that ties direction to its business success, TeraWulf expects to offer attractive mining economics at an industrial scale. 

Forward-Looking Statements 

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as "plan," "believe," "goal," "target," "aim," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf's management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward- looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions in the cryptocurrency mining industry, including fluctuation in the market pricing of bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including as to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among the various providers of data mining services; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf's operations or the industries in which it operates, including regulation regarding power generation, cryptocurrency usage and/or cryptocurrency mining; (4) the ability to implement certain business objectives and to timely and cost-effectively execute integrated projects; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to growth strategies or operations; (6) loss of public confidence in bitcoin or other cryptocurrencies and the potential for cryptocurrency market manipulation; (7) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (8) the availability, delivery schedule and cost of equipment necessary to maintain and grow the business and operations of TeraWulf, including mining equipment and equipment meeting the technical or other specifications required to achieve its growth strategy; (9) employment workforce factors, including the loss of key employees; (10) litigation relating to TeraWulf, IKONICS and/or the business combination; (11) the ability to recognize the anticipated objectives and benefits of the business combination; and (12) and other risks and uncertainties detailed from time to time in the Company's filings with the SEC. Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward- looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company's filings with the SEC, which are available at www.sec.gov.

Contact: 

Investors 
Sandy Harrison 
harrison@terawulf.com 
(410) 770-9500 

Media 
Michael Freitag / Joseph Sala / Lyle Weston 
Joele Frank, Wilkinson Brimmer Katcher 
(212) 355-4449  

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SOURCE TeraWulf Inc.

FAQ

What is the purpose of TeraWulf's public offering of common stock?

TeraWulf intends to use the net proceeds for mining operations, digital asset infrastructure, working capital, and general corporate purposes.

Who is participating in TeraWulf's stock offering?

Existing investors, including CEO Paul Prager, have agreed to purchase $5 million of shares at $7.88 each.

How much additional stock can the underwriter purchase in TeraWulf's offering?

The underwriter has a 30-day option to purchase up to an additional 15% of the number of shares offered.

What is the stock symbol for TeraWulf?

The stock symbol for TeraWulf is WULF.

When was TeraWulf's shelf registration statement declared effective?

The shelf registration statement was declared effective by the SEC on February 4, 2022.