TLDR
- TeraWulf plans $3.5 billion in debt to expand its new Kentucky AI campus.
- Anthropic’s 20-year lease could generate about $19 billion in total revenue.
- Morgan Stanley is expected to lead TeraWulf’s planned $3.5 billion financing.
- The funding package may include leveraged loans and high-yield bond financing.
- WULF rose in pre-market trading after gaining nearly 7% during Thursday’s session.
TeraWulf Inc. (WULF) stock extended its gains after reports outlined a planned $3.5 billion debt raise. The financing would support the company’s expanding artificial intelligence infrastructure operations in Kentucky. WULF rose 1.72% in pre-market trading to $23.60 after gaining nearly 7% on Thursday.
TeraWulf Plans $3.5 Billion Financing Package
TeraWulf reportedly plans to secure about $3.5 billion through leveraged loans and high-yield bonds. Morgan Stanley will lead the financing process, according to chief financial officer Patrick Fleury. The company expects to launch the transaction before the end of this year.
The proposed deal would mark TeraWulf’s first move into the leveraged loan market. Morgan Stanley previously managed several bond offerings for the Bitcoin mining and data center operator. Some lenders from TeraWulf’s revolving credit facility could also join the planned financing.
TeraWulf secured a $250 million revolving credit line earlier this year to support corporate operations. The company also raised $1.3 billion through a debt offering in December 2025. It completed another $3.2 billion debt transaction during October 2025.
Anthropic Lease Supports Kentucky Data Center Growth
TeraWulf plans to use the new financing for its Justified Data campus in Hawesville, Kentucky. The large facility will provide power and infrastructure for demanding artificial intelligence computing workloads. Anthropic recently signed a 20-year lease covering capacity at the developing campus.
The lease could generate about $19 billion in contracted revenue during its initial term. The agreement also includes two separate five-year extension options after the first period. These terms provide TeraWulf with a longer revenue outlook for the Kentucky development.
Initial operations at Justified Data should begin during the second half of 2027. TeraWulf expects the full campus buildout to reach completion during early 2028. The development will expand the company’s position within the high-performance computing infrastructure market.
TeraWulf Addresses Growth Model and Insider Concerns
TeraWulf has expanded beyond Bitcoin mining as demand for artificial intelligence capacity increases. The company now develops facilities that provide power, cooling, and other supporting infrastructure. Customers remain responsible for computing equipment, chip replacements, and future technology upgrades.
Market participants have raised questions about insider stock sales and shareholder alignment. Blocksbridge Consulting recently cited TeraWulf during a discussion about insider transactions across Bitcoin mining companies. The scrutiny followed strong share gains linked to artificial intelligence infrastructure announcements.
TeraWulf has also faced questions regarding maintenance costs across its data center projects. Fleury recently rejected a short-seller model that estimated higher long-term operating expenses. He said TeraWulf provides facility infrastructure while customers manage equipment maintenance and computing upgrades.
Morgan Stanley also raised its TeraWulf price target to $72 from $66.50. The target suggested substantial upside from the company’s previous closing price. The bank also maintained its Overweight rating on WULF shares.
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