TeraWulf Seeks $3.5B Debt Financing for Anthropic-Linked Data Center
Vexoda Newsroom
Bitcoin miner TeraWulf is aiming to raise $3.5 billion through debt financing, with Morgan Stanley leading the effort for its Kentucky data center leased by AI company Anthropic.
TeraWulf, a US-based Bitcoin mining firm, has reportedly set its sights on raising an impressive $3.5 billion in debt funding to expand its Justified Data campus in Kentucky. This project is being developed specifically for artificial intelligence (AI) computing workloads and will house the facility leased by Anthropic under a 20-year agreement.
The financing effort, spearheaded by investment bank Morgan Stanley, marks TeraWulf’s first venture into the leveraged loan market, potentially including both leveraged loans and high-yield bonds. The deal is expected to materialize this year, with initial operations anticipated in late 2027 and full buildout planned for early 2028.
This development comes after TeraWulf recently signed a long-term lease agreement with Anthropic, highlighting the growing demand for AI computing capacity as data center operators seek new funding opportunities. The $19 billion in contracted revenue over the initial lease term underscores the significant financial backing behind this ambitious project.
TeraWulf has previously raised substantial amounts through financing activities; it secured a total of $4.5 billion, including offerings worth $1.3 billion and $3.2 billion respectively, between December 2025 and October 2025. However, the company faces scrutiny over insider transactions and its growth model.
The planned expansion into AI data centers is part of a broader trend in the industry where companies are exploring new revenue streams to sustain their operations. As demand for AI computing power continues to rise, TeraWulf’s move could set a precedent for other mining firms looking to diversify their business models beyond traditional cryptocurrency mining.
Traders and investors should monitor how this financing deal progresses, as it may impact the broader market dynamics of data center operators and AI-driven businesses. The success or failure of TeraWulf in executing its ambitious plans could influence future investment strategies within both sectors.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.