TeraWulf plans $3.5 billion debt raise to build Kentucky AI data center for Anthropic

TeraWulf plans $3.5 billion debt raise for Kentucky Anthropic's data center By Investing.com

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. Access breaking news faster with institutional-grade feeds on InvestingPro -- now 60% off. 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.

TeraWulf Plans to Raise $3.5 Billion in Debt for Kentucky AI Data Center

TeraWulf Inc. develops, owns, and operates digital infrastructure platforms that support artificial intelligence (AI), high-performance computing (HPC), and other compute-intensive workloads. The Company uses power infrastructure, grid connectivity, and development sites to provide capacity for data center and compute deployments. The Company operates in energy markets and grid integration and provides infrastructure for AI and computing workloads in the United States. The Company operates through two segments: Digital Asset Mining and HPC Leasing. Digital Asset Mining consists of providing hash computation services to a mining pool operator facilitating transaction validation on the global bitcoin network using its fleet of application-specific integrated circuit miners. HPC Leasing consists of providing high-density colocation services to third parties for HPC operations. Its subsidiaries include Akela Data LLC, Big Country Wulf LLC, Lake Hawkeye LLC, and others.