Crypto and AI data center company TeraWulf has increased its convertible notes offering to $900 million, due 2032.

Originally set at $500m, the funds will be used for the construction of the company's data center in Abernathy, Texas. TeraWulf has granted the initial purchasers of the convertible notes a 13-day option to purchase up to an additional $125m aggregate principal amount of the convertible notes.

TeraWulf anticipates that the aggregate net proceeds from the offering will be around $877.6m (or $999.7m if the initial purchasers purchase additional notes in full), after deducting discounts and commissions and estimated offering expenses payable by TeraWulf.

The debt will not rack up interest, instead it will convert into shares at a pre-set price, with the notes including a 37.5 percent conversion premium.

TeraWulf is looking to raise as much as $3bn for its data center buildout, primarily to support Fluidstack and Google.

Google, which has taken a 14 percent stake in TeraWulf, has financially backed Fluidstack’s long-term lease obligations to support project-related debt financing on the projects.

The companies plan to develop and deliver 168MW of critical IT load (240MW gross) at a new 120-acre data center campus in Abernathy, expected to be delivered in the second half of 2026.

The 25-year hosting commitment represents approximately $9.5 billion in contracted revenue to the joint venture. TeraWulf will hold a majority stake of 51 percent in the joint venture.