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As the industry matures, debt capital is preferred by investors, given its non-dilutive nature. Indeed, offering equity in the current market has often not been kind to the share price of miners. Most recently, shares of TeraWulf (WULF), which uses 100% clean energy to power its mining operations, tumbled about 30% on April 12 after the company said it would raise $20.6 million by selling common stock. Another miner, Digihost (DGHI), said in March that it would raise $250 million through an “at-the-market (ATM)” equity program, which allows the miners to sell shares from time to time. At the time Digihost’s market cap was less than $100 million, making a capital raise of $250 million – even over a period of time – a sizable amount. The shares of the stock fell about 18% on March 4, according to FactSet data.
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