Bitcoin miner-turned-AI factory TeraWulf (Nasdaq: WULF) has set Dec. 9 as the mandatory conversion date for all outstanding Series A Convertible Preferred Stock after its shares traded above 130% of the conversion price, the company announced on Tuesday.
TeraWulf called the conversion after its common stock exceeded the $10 threshold for at least five trading days between Nov. 4 and Nov. 24, as outlined in its Certificate of Designations filed in 2022. Each preferred share will convert into 141.9483 common shares.
Holders may convert voluntarily before Dec. 9, though early conversions will not include accrued dividends. TeraWulf’s chief financial officer, Patrick Fleury, said the conversion simplifies the company’s capital structure.
The announcement follows several recent financial disclosures by the company. TeraWulf reported third-quarter revenue of $50.6 million on Nov. 10, with $43.38 million from bitcoin mining and $7.2 million from AI infrastructure services.
On Oct. 29, TeraWulf proposed a $500 million offering of convertible senior notes due 2032. Initial purchasers have the option to buy an additional $75 million of notes within 13 days of issuance. The notes will be senior unsecured obligations. TeraWulf called the raise part of its plan to fund construction at its data center campus in Abernathy, Texas.
One day earlier, on Oct. 28, TeraWulf announced a $9.5 billion extension to its partnership with AI cloud platform Fluidstack. The companies formed a joint venture to build 168 MW of critical IT load at the Abernathy site under a 25-year hosting agreement. TeraWulf called the contract a long-term expansion of its existing relationship with the Google-backed platform.
The mandatory conversion will retire the preferred stock series once completed, leaving the company with a single class of common shares.
TeraWulf reiterated that holders who choose not to convert early will receive common stock automatically without taking action.
