TeraWulf Inc. (WULF) shares plummeted nearly 8% in after-hours trading on October 23, following the company's announcement of a proposed $350 million convertible senior notes offering.
The cryptocurrency mining firm stated its intention to offer the convertible notes to qualified institutional buyers, subject to market conditions. TeraWulf plans to use the proceeds from the offering to fund capped call transactions, repurchase shares of its common stock, and for general corporate purposes.
Convertible notes are debt securities that can be converted into a predetermined amount of the company's common stock or cash at certain times during the note's life, subject to specific terms and conditions. The announcement of a convertible debt offering often raises concerns about potential dilution for existing shareholders if the notes are converted into shares in the future.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.