Bitcoin miner Terawulf falls after convertible debt deal priced

Terawulf

24/10/2024 17:02

** Terawulf's  WULF.O  shares down 6.5% at $5.99 on Thurs after
capital raise 
** Easton, Maryland-based bitcoin miner early Thurs announced
pricing upsized offering of $425 mln 2.75% 6-yr convertible
bonds
** Initial conversion price of $8.48 represents 32.5% premium to
stock's last close
    ** Co plans to use ~$51 mln of net proceeds to pay for
capped calls and $115 mln to repurchase its stock
  
    ** Remainder for general purposes, including working
capital, strategic acquisitions, data center infrastructure
expansion to support high-performance computing (HPC), it said
  
    ** After the bell Weds, co announced $350 mln convertible
offering and  its board authorized $200 mln stock buyback
program
  
    ** Co has current market cap of ~$2.3 bln, per LSEG data
  
    ** Even with decline on the session, stock up ~150% YTD
  
    ** All 8 analysts covering WULF are bullish and their median
PT is $6.50
  

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))