Key Highlights TeraWulf plans to secure roughly $3.5 billion through leveraged loans and high-yield bonds to fund a Kentucky data center campus Morgan Stanley will spearhead the financing pac
TeraWulf (WULF) is accelerating its expansion plans. The bitcoin mining company-turned-AI infrastructure provider is gearing up to secure roughly $3.5 billion through debt markets to construct an expansive data center complex in Kentucky — with artificial intelligence firm Anthropic already committed as its anchor tenant.
Shares of WULF advanced 2.43% to $23.39 during Thursday’s session.
The capital raise will combine leveraged loans with high-yield bond offerings. Morgan Stanley has been tapped to orchestrate the financing effort, as confirmed by CFO Patrick Fleury. Market participants anticipate the transaction will debut sometime this year.
This represents TeraWulf’s maiden voyage into the leveraged loan space. The firm has already demonstrated strong capital markets access, having issued $1.3 billion in high-yield debt this past December and another $3.2 billion in October, marking a historic milestone as the inaugural bitcoin mining operation to access junk bond markets.
Just days ago, TeraWulf finalized a two-decade lease arrangement with Anthropic for the Kentucky property, branded as Justified Data. The site is currently under development in Hawesville, located roughly 60 miles southwest of Louisville.
According to Fleury, the agreement should produce approximately $19 billion in committed revenue over its duration and features two additional five-year renewal provisions. The facility will provide 401 megawatts of artificial intelligence computing power, with initial operations slated to commence in the latter part of 2027.
Reporting from Bloomberg last month indicated that Anthropic has additionally committed to leasing computing hardware at two separate TeraWulf data center locations.
Fleury pointed out that numerous financial institutions involved in TeraWulf’s $250 million revolving credit arrangement earlier this year may also take part in the Justified Data financing round.
On Thursday, Morgan Stanley reaffirmed its Overweight recommendation on WULF while elevating its price objective from $66.50 to $72, pointing to the company’s expanding artificial intelligence infrastructure opportunities.
The analyst’s revised outlook provided additional momentum to shares that had already been trending upward following the Anthropic lease disclosure.
TeraWulf is simultaneously offloading its 50.1% ownership position in the Abernathy Joint Venture — converting approximately $450 million in assets at favorable terms. The transaction highlights the company’s strategic realignment from cryptocurrency mining operations toward AI-focused data center infrastructure.
This transformation hasn’t been entirely smooth. Earlier in the week, WULF encountered resistance from Samsung’s lackluster preliminary second-quarter performance, news that Chinese AI startup DeepSeek was developing proprietary AI inference processors, and Meta Platforms’ announcement regarding competing cloud infrastructure initiatives. Declining Bitcoin valuations further dampened investor enthusiasm.
Short interest in TeraWulf experienced a marginal decline, dropping from 108.78 million shares to 108.65 million during the latest reporting cycle. This represents 25.82% of the publicly traded float. Based on recent average daily volume of 26.35 million shares, short sellers would require approximately 4.12 days to fully exit their positions.
Morgan Stanley has served as lead underwriter for all of TeraWulf’s prior bond issuances and has maintained ongoing dialogue with company leadership regarding potential entry into the loan market for an extended period.
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