Bitcoin miner TeraWulf raised $32 million from a public equity offering.
The company also reached a "binding agreement in principle" with its existing lenders to restructure its debt, which was subject to the equity capital raise, it said Thursday.
"In reaching these achievements, we believe more than ever that TeraWulf is positioned to deliver profitable growth and compelling returns," said CEO Paul Prager. "We are confident in our ability to raise additional funds needed to obtain debt relief and committed to creating shareholder value."
Following the deals, the company expects to achieve free cash flow. It will use the net proceeds to build out its facilities in New York and Pennsylvania and for other general purposes.
The debt restructuring will replace the amortization of a term loan with a free cash flow sweep mechanism through April 2024, subject to the TeraWulf raising the requisite amount of equity proceeds by March 15.
The company announced that its co-founders Paul Prager and Nazar Khan, chief operating officer, purchased $2.5 million in a private placement at a market price of $1.05 per share.
It also said that it received $4.25 million in proceeds from the exercise of certain private placement warrants issued in December 2022.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.