TeraWulf is preparing to raise roughly $3.5 billion of debt to finance the Anthropic‑leased AI campus in Kentucky, according to Bloomberg — a move that underscores the company’s fast pivot from Bitcoin mining to large‑scale AI and high‑performance computing (HPC) hosting.
What’s being planned
- Size and instruments: About $3.5 billion in debt, potentially a mix of leveraged loans and high‑yield bonds.
- Lead bank: Morgan Stanley is expected to lead the deal, which could launch in 2026.
- New market entry: CFO Patrick Fleury said the company may enter the leveraged loan market for the first time. (Leveraged loans typically target companies with higher leverage or below‑investment‑grade ratings and often carry variable rates that can rise with benchmarks.)
Why the financing
- Purpose: To fund construction at TeraWulf’s Justified Data campus in Hawesville, Kentucky, built for Anthropic’s AI infrastructure.
- Campus specs and timeline: The site is being developed to support about 401 MW of critical IT load. Initial capacity is expected in the second half of 2027, with full deployment targeted for early 2028.
- Revenue outlook: TeraWulf projects roughly $19 billion in contracted revenue over the lease’s initial 20‑year term; the company says the contract benefits from an investment‑grade credit profile. Note: that $19B is projected revenue over time, not an upfront payment, and construction/operating costs will affect net proceeds.
Context and past financing
- Previous borrowing: In October 2025, a TeraWulf subsidiary priced $3.2 billion of senior secured notes at a 7.75% coupon maturing in 2030 to help fund its Lake Mariner expansion in New York. The firm has also raised convertible debt and other credit facilities since.
- This new Kentucky financing, if completed, would further increase TeraWulf’s debt load as it scales into AI computing.
Strategic shift and business impact
- From miners to infrastructure operator: TeraWulf — historically a Bitcoin miner — is repositioning as an energy infrastructure operator for AI and HPC customers. Its Q1 2026 results showed over 50% of revenue came from HPC hosting, and the Anthropic lease provides a long‑duration contracted revenue stream that can reduce exposure to Bitcoin price swings and mining difficulty.
- Industry trend: Several Bitcoin miners are repurposing access to power, land and cooling to capture demand for data centers and AI compute.
Risks and uncertainties
- Market and timing: The $3.5B raise is subject to market conditions; TeraWulf and Morgan Stanley had not issued detailed public terms when the report published.
- Cost and execution: TeraWulf must front large construction and operating costs before realizing lease revenue. The company has faced scrutiny over construction cost estimates, insider stock sales and its long‑term funding model. Fleury has stressed that customers are responsible for servers, processors and technology upgrades while TeraWulf provides power and physical infrastructure.
- Rate exposure: Leveraged loans’ variable rates could raise borrowing costs if benchmarks climb.
Share reaction and outlook
- Market response: TeraWulf shares rose after the Anthropic deal was announced, reflecting investor interest in recurring AI infrastructure revenue. Still, final financing terms, launch timing and broader market conditions will determine how the company executes this next phase.
Bottom line: The proposed $3.5 billion debt package would be a major bet on Anthropic’s long‑term commitment and on TeraWulf’s transition from crypto miner to AI infrastructure provider. The plan adds scale and revenue visibility, but also raises questions about leverage, execution risk and interest‑rate exposure as the company builds the Kentucky campus.
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