TLDR
- TeraWulf is seeking $3.5 billion in debt financing, led by Morgan Stanley, to build an AI campus in Kentucky leased by Anthropic.
- The deal could include leveraged loans and high-yield bonds — TeraWulf’s first entry into the leveraged loan market.
- A 20-year lease with Anthropic is projected to generate around $19 billion in contracted revenue.
- Initial operations at the Kentucky campus are expected in the second half of 2027, with full buildout by early 2028.
- TeraWulf faces investor questions over insider stock sales, construction costs, and its long-term funding model.
TeraWulf is looking to raise $3.5 billion in debt to build out its Justified Data campus in Hawesville, Kentucky — a facility already locked in under a 20-year lease with Anthropic.
Morgan Stanley is expected to lead the financing, which could include leveraged loans and high-yield bonds. TeraWulf CFO Patrick Fleury confirmed the plans in a Bloomberg report Thursday.
WULF stock rose when the Anthropic deal was first disclosed. The lease is projected to generate roughly $19 billion in contracted revenue over its initial term.
This would mark TeraWulf’s first time entering the leveraged loan market. Leveraged loans typically come with variable interest rates, which can push borrowing costs higher if benchmark rates rise.
No final terms, interest rates, or closing date have been announced. The raise remains subject to market conditions, and neither TeraWulf nor Morgan Stanley had issued a formal statement by publication time.
Big Numbers, Long Timeline
The $19 billion revenue figure sounds eye-catching, but it’s spread over 20 years — not an upfront payment. Construction, financing costs, and operating expenses will all eat into what TeraWulf ultimately keeps.
The Kentucky campus is designed to support roughly 401 megawatts of critical computing load. First operations are targeted for the second half of 2027, with full capacity expected by early 2028.
This $3.5 billion raise is the latest in a string of large debt offerings. TeraWulf raised $3.2 billion in October 2025 through senior secured notes at a 7.75% interest rate, maturing in 2030. It also raised $1.3 billion in December 2025.
Those earlier funds went toward expanding its Lake Mariner data center in New York.
From Bitcoin Mining to AI Infrastructure
TeraWulf’s first-quarter 2026 results showed that more than 50% of revenue now comes from HPC hosting. The company has repositioned itself as an energy infrastructure operator focused on AI and high-performance computing clients.
Fleury has pushed back on short-seller claims about high maintenance costs. He argues that customers are responsible for servers, processors, and tech upgrades — TeraWulf just provides power and physical infrastructure.
That distinction matters for how investors model recurring costs going forward.
Still, questions remain. Investor scrutiny over insider stock sales has mounted, with Bitcoin mining advisory firm Blocksbridge Consulting recently flagging TeraWulf as an example of the trend.
The company must also complete the Kentucky campus before it sees the full contracted revenue from the Anthropic deal.
Fleury has said the long-term lease structure limits the kind of recurring upgrade and reconfiguration costs that typically burden data center operators. TeraWulf’s Q1 2026 results showed contracted leases are already reducing its exposure to Bitcoin price swings.
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