- TeraWulf seeks $3.5B in debt, led by Morgan Stanley, to expand its AI data center.
- The expansion follows a 20-year lease projected to generate $19B by 2028.
- This financing would underscore growing institutional confidence in hosting AI data centers.
Bitcoin miner TeraWulf Inc. (NASDAQ: WULF) is pursuing $3.5 billion in debt financing led by Morgan Stanley to expand its Anthropic-leased artificial intelligence (AI) data center campus in Kentucky. The expansion builds on a recent 20-year lease expected to generate $19 billion in revenue for roughly 400 megawatts (MW) of AI infrastructure capacity.
TeraWulf Seeks $3.5B Debt to Expand Its Anthropic AI Data Center
TeraWulf is preparing to raise approximately $3.5B in debt financing to expand its Justified Data campus in Hawesville, Kentucky, leased to Anthropic AI under a long-term agreement. The financing is expected to include leveraged loans and high-yield bonds, marking the company’s first entry into the leveraged loan market.
Meanwhile, investment bank Morgan Stanley will lead the financing effort, building on its role in TeraWulf’s prior debt offerings. The move follows previous financing offerings, where TeraWulf raised $1.3B in December 2025 and $3.2B in October 2025. TeraWulf’s CFO, Patrick Fleury, noted that lenders involved in the company’s earlier $250M revolving credit facility may also participate.
Why BTC Miners Are Pivoting to AI Data Centers
BTC miners are undergoing a profound strategic shift toward AI and high-performance computing (HPC) data centers, driven by challenging mining economics and explosive demand for AI infrastructure. This pivot is transforming former crypto operators into providers of critical computing capacity for tech giants.
Notably, the 2024 BTC halving cut block rewards in half, and subsequent surges in network hashrate and difficulty have driven hash prices to cyclical lows. Industry reports indicate that dedicating power to BTC mining now offers lower returns compared to long-term AI leases.
In contrast, AI/HPC contracts provide stable and high-margin revenues. The contracts are typically 10-20 years with creditworthy counterparties, and they provide predictable dollar-denominated cash flows. AI hosting can achieve margins of over 80% compared to traditional mining.
What’s Next for TeraWulf and BTC Miners in the AI Era?
For TeraWulf, the immediate focus is on executing the landmark Anthropic lease. The 401 MW facility will ramp in phases, with initial capacity online in the second half of 2027 and full build-out targeted for early 2028. This deal alone is expected to generate $19B in contracted revenue over the initial 20-year term, with two five-year extension options.
BTC miners are rapidly evolving into AI infrastructure providers, with publicly listed firms securing more than $70 billion in AI and high-performance computing contracts. Companies including Core Scientific, IREN, and Hut 8 continue expanding GPU-ready AI data centers through strategic partnerships and capital raises.
Related: Bitcoin vs. AI Computing: Who Leaves the Bigger Carbon Footprint?
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