Overview
TeraWulf Inc. announced plans to raise approximately $3.5 billion in debt to finance the construction of a new AI‑focused data‑center campus in Kentucky. The financing package will comprise both leveraged loans and high‑yield bonds, marking the company’s first foray into the leveraged loan market.
Financing Structure and Lead Arranger
The debt issuance is slated to launch later this year, with Morgan Stanley appointed as the lead arranger. According to Chief Financial Officer Patrick Fleury, lenders that participated in TeraWulf’s $250 million revolving credit line earlier in the year are expected to join the new financing.
Prior Capital Market Activity
TeraWulf has previously accessed the high‑yield market, selling $1.3 billion of high‑yield debt in December and $3.2 billion in October, becoming the first bitcoin miner to tap the junk‑bond market.
Strategic Shift and Lease Agreement
The company has shifted its strategic focus from cryptocurrency mining to developing artificial‑intelligence infrastructure. On Monday, TeraWulf signed a 20‑year lease with Anthropic PBC for the Kentucky facility, a deal projected to generate roughly $19 billion in revenue. The lease includes two five‑year extension options.
Campus Details
The campus, branded Justified Data, is under construction in Hawesville, located about an hour southwest of Louisville. In addition to the Kentucky site, Anthropic has agreed to lease computer chips at two other TeraWulf data‑center locations.
Summary of Key Figures
- Debt raise target: $3.5 billion
- Debt composition: leveraged loans + high‑yield bonds
- Lead arranger: Morgan Stanley
- Prior high‑yield issuances: $1.3 bn (Dec), $3.2 bn (Oct)
- Lease term with Anthropic: 20 years, $19 bn revenue potential, two 5‑year extensions
- Campus name: Justified Data, location: Hawesville, KY