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

TeraWulf Inc. is preparing to raise approximately $3.5 billion in debt to finance a new data center campus for artificial intelligence firm Anthropic, a move that deepens the company's strategic pivot from cryptocurrency mining to AI infrastructure.

Financing a Strategic Pivot

The financing package, which is expected to launch this year, will mark TeraWulf's first entry into the leveraged loan market, according to a Bloomberg report citing Chief Financial Officer Patrick Fleury. The transaction will be led by Morgan Stanley and is expected to include a mix of leveraged loans and high-yield bonds.

This follows previous forays into the high-yield debt market, where TeraWulf became the first bitcoin miner to issue junk bonds. The company sold $1.3 billion of high-yield debt in December and $3.2 billion in October, establishing a track record in capital markets.

The Anthropic Agreement

The proceeds are designated for the construction of TeraWulf's "Justified Data" campus in Hawesville, Kentucky. The project is anchored by a major agreement with AI developer Anthropic, which has signed a long-term lease for the facility. Key terms of the deal include:

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• Projected Revenue: Approximately $19 billion over the life of the contract.
• Lease Term: An initial 20-year term, with two five-year options to extend.

This agreement builds on an existing relationship, as Anthropic has also agreed to lease computer chips at two other TeraWulf data centers, according to a previous Bloomberg report.

Market Context

TeraWulf's focus on developing AI infrastructure represents a significant diversification from its origins in bitcoin mining, aiming to capitalize on the immense demand for computing power. The company is leveraging its expertise in building and operating energy-intensive facilities for a new, high-growth market.

CFO Patrick Fleury indicated that lenders who participated in TeraWulf's $250 million revolving credit line earlier this year could also be involved in the new financing for the Justified Data campus, suggesting existing lender confidence in the company's new direction.