TeraWulf commits to raising $3.5B in debt (led by Morgan Stanley) to build dedicated data center for Anthropic, signaling major infrastructure investment in bespoke AI compute.
Bitcoin mining and data center company TeraWulf is reportedly preparing to raise approximately $3.5 billion in debt to fund an artificial intelligence campus leased by Anthropic. The planned financing could include leveraged loans and high-yield bonds, according to Bloomberg, with Morgan Stanley expected to lead the transaction, which could launch later in 2026.
TeraWulf Chief Financial Officer Patrick Fleury reportedly said the company could enter the leveraged loan market for the first time as part of the financing package. Leveraged loans typically serve companies with high debt levels or below-investment-grade credit profiles and often carry variable interest rates, which can increase borrowing costs when benchmark rates rise.
The company may combine the loan with high-yield bonds to finance construction at its Justified Data campus in Hawesville, Kentucky. TeraWulf has not yet announced final terms, interest rates, or a closing date. The reported $3.5 billion raise remains subject to market conditions, and neither TeraWulf nor Morgan Stanley had publicly issued a detailed financing announcement at the time of publication.
This financing follows TeraWulf's 20-year lease agreement with Anthropic. Under the agreement, TeraWulf will develop a purpose-built AI infrastructure campus capable of supporting approximately 401 megawatts of critical computing load, with initial capacity expected to begin operating in the second half of 2027 and full deployment targeted for early 2028. TeraWulf estimates the lease will generate approximately $19 billion in contracted revenue over its initial term and said the contract would receive support from an investment-grade credit profile.
TeraWulf shares rose after the company disclosed the Anthropic deal, which gives the former Bitcoin-focused operator a long-term source of contracted AI infrastructure revenue. However, the projected $19 billion represents revenue expected over 20 years rather than an upfront payment, and construction, financing, and operating costs will affect the amount that ultimately reaches TeraWulf.
TeraWulf has already used large debt offerings to build its high-performance computing operations. In October 2025, its subsidiary priced $3.2 billion of senior secured notes carrying a 7.75% annual interest rate and maturing in 2030. The company used those proceeds to finance part of its Lake Mariner data center expansion in New York and later raised additional capital through convertible debt and other credit facilities. The planned Kentucky financing would further increase the amount of borrowed funds supporting its move into AI computing.
TeraWulf is among several Bitcoin miners moving into AI and high-performance computing, as mining companies can reuse access to power, land, and cooling systems to meet growing data center demand. The company previously generated most of its income through Bitcoin mining but now describes itself as an energy infrastructure operator serving AI and high-performance computing clients. Its first-quarter 2026 results showed that more than 50% of revenue came from HPC hosting, with contracted leases potentially reducing dependence on Bitcoin prices and mining difficulty.
However, the expansion requires large upfront spending. TeraWulf must build the Kentucky campus before receiving the full lease revenue expected from Anthropic and has faced questions over construction costs, insider stock sales, and its long-term funding model. Fleury has argued that customers remain responsible for servers, processors, and technology upgrades, while TeraWulf supplies power and physical infrastructure.