TeraWulf plans $3.5 billion debt raise for Kentucky Anthropic’s data center

Investing.com -- TeraWulf Inc. is preparing to raise approximately $3.5 billion in debt to construct a data center campus in Kentucky, marking the company's first entry into the leveraged loan market, Bloomberg reported on Thursday.

The financing is expected to launch this year, with Morgan Stanley set to lead the effort, according to Chief Financial Officer Patrick Fleury.

The transaction will include both leveraged loans and high-yield bonds. TeraWulf previously sold $1.3 billion of high-yield debt in December and $3.2 billion in October, becoming the first bitcoin miner to access the junk bond market.

The company has shifted its focus from cryptocurrency mining to developing artificial intelligence infrastructure. On Monday, TeraWulf signed a 20-year lease agreement with Anthropic PBC for the Kentucky facility. The deal is expected to generate approximately $19 billion in revenue and includes two five-year extension options, Fleury said.

The campus, called Justified Data, is under construction in Hawesville, located about an hour southwest of Louisville.

Anthropic has also agreed to lease computer chips at two other TeraWulf data centers, Bloomberg News reported last month.

Morgan Stanley has led TeraWulf's previous bond offerings, and the companies have discussed entering the loan market. Fleury said many lenders who participated in TeraWulf's $250 million revolving credit line earlier this year could also participate in the Justified Data financing.

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