Monitor TerraVolt's ability to secure financing for the $27M cash purchase and to obtain necessary entitlements and permits for the data center campus. The convertible note conversion at $5.00/share represents potential future dilution if the stock price reaches that threshold.
Price Chart
Executive Summary
TerraVolt Holdings entered into two option agreements to purchase approximately 1,077 acres in Cassia County, Idaho for a planned 240 MW behind-the-meter gas-powered data center campus. The cash parcels (903.3 acres) have an estimated purchase price of $27,099,000 payable in cash, and the stock parcels (174.1 acres) have an estimated purchase price of $5,223,000 payable via a convertible secured promissory note. The options expire on October 23, 2027, with a potential six-month extension for an aggregate $75,000 fee.
Key Financial Metrics
Key Facts
- TerraVolt deposited $150,000 in aggregate option fees, 50% nonrefundable and 50% refundable under certain conditions.
- The cash parcels purchase price is $30,000 per acre, estimated total $27,099,000 for 903.3 acres.
- The stock parcels purchase price is $30,000 per acre, estimated total $5,223,000 for 174.1 acres, payable via a convertible secured promissory note.
- The convertible note has a two-year term, bears interest at the lowest applicable AFR, and is convertible into common stock at $5.00 per share.
- The options must be exercised simultaneously, and closings must occur concurrently.
- The company plans to develop a 240 MW behind-the-meter digital infrastructure campus with firm gas supply of 55,000 MMBtu/day.
- The options expire on October 23, 2027, extendable by six months for $75,000.
- The company's stock trades on OTCQB with a normal daily move of 5.5%.
Financial Impact
Total estimated land purchase price of approximately $32,322,000 ($27,099,000 cash + $5,223,000 convertible note). Option fees of $150,000 paid upfront.
Risk Factors
- The company must raise capital to fund the cash purchase price and campus development.
- The convertible note could result in significant dilution if converted into common stock.
- The project requires numerous governmental approvals, permits, and water rights which may not be obtained.
- The options expire in 12 months (extendable by 6 months), creating a time constraint on due diligence and financing.
- The company is in early stages with no revenue from this project; execution risk is high.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-049362 |
| Exhibit: ex10-1.htm | 0001493152-26-049362 |
| Exhibit: ex99-1.htm | 0001493152-26-049362 |
| Document: form8-k.htm | 0001493152-26-049362 |
| Document: 0001493152-26-049362-index-headers.html | 0001493152-26-049362 |
| Document: 0001493152-26-049362-index.html | 0001493152-26-049362 |
| Document: 0001493152-26-049362.txt | 0001493152-26-049362 |
US Market Status
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