A former Bitcoin miner is about to make its biggest debt raise yet and the money is going straight into artificial intelligence. TeraWulf Inc. (NASDAQ: WULF) is preparing to raise approximate
A former Bitcoin miner is about to make its biggest debt raise yet and the money is going straight into artificial intelligence.
TeraWulf Inc. (NASDAQ: WULF) is preparing to raise approximately $3.5 billion in debt to build a new data center campus in Kentucky, Bloomberg reported on Thursday, citing people familiar with the matter.
The raise marks the company's first entry into the leveraged loan market. Morgan Stanley is set to lead the financing, which is expected to launch later this year, according to TeraWulf Chief Financial Officer Patrick Fleury.
The transaction will combine leveraged loans with high-yield bonds. TeraWulf has raised debt this way before, the company sold $1.3 billion in high-yield bonds in December and $3.2 billion in October, becoming the first Bitcoin mining company to access the high-yield bond market.
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Like several other Bitcoin miners over the past year, TeraWulf has been shifting away from pure mining and toward a new business entirely, building physical infrastructure for artificial intelligence companies.
The mining hardware and data centers that once processed Bitcoin transactions are increasingly being repurposed, or built alongside new facilities, to house the computing power AI companies need. and TeraWulf shift from Bitcoin mining became concrete this week.
On July 6, TeraWulf signed a 20-year lease agreement with Anthropic PBC for its Kentucky data center campus, called Justified Data. According to a TeraWulf press release, the lease is expected to generate approximately $19 billion in contracted revenue over its initial term. The facility is designed to support 401 megawatts of critical IT load and is expected to begin operations in the second half of 2027.
The deal builds on a broader relationship, Anthropic has separately agreed to lease computing chips at two other TeraWulf data centers, Bloomberg reported last month.
Wall Street has responded positively. On July 7, Morgan Stanley reiterated its Overweight rating on TeraWulf and raised its price target from $66.50 to $72, citing the Anthropic partnership as a key driver.
TeraWulf shares extended their gains on Thursday, rising 4.5% to trade at $23.87. The stock is up more than 80% year-to-date, reflecting investor enthusiasm for the company's pivot toward AI infrastructure.
To help fund its AI expansion, TeraWulf also sold its 50% stake in a 168-megawatt data center in Abernathy, Texas, to an investor group led by Fluidstack.
The company signaled this transition back in May, stating that AI infrastructure would increasingly drive its business going forward.
Morgan Stanley has led each of TeraWulf's previous bond offerings, and according to Fleury, many of the lenders who participated in the company's $250 million revolving credit line earlier this year are expected to also take part in the Justified Data financing.
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