Shares of TeraWulf Inc. (WULF) plunged by 7.89% on October 23, 2024, following the company's announcement of a proposed private offering of $350 million in convertible senior notes due 2030.

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 pay for capped call transactions, repurchase shares of its common stock, and for general corporate purposes.

Convertible notes are a type of debt security 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.