Bitcoin mining and data center company TeraWulf is reportedly preparing to raise about $3.5 billion in debt to fund an AI campus that Anthropic is leasing.
summary
- TeraWulf is reportedly seeking $3.5 billion through leveraged loans and bonds for its Kentucky AI campus.
- Anthropic’s 20-year lease could generate about $19 billion as the facility reaches full capacity.
- The financing adds debt risk as TeraWulf shifts from Bitcoin mining toward contracted AI infrastructure revenue.
The planned financing could include subsidized loans and high-yield bonds, according to Bloomberg a report. Morgan Stanley is expected to lead the deal, which could launch later in 2026.
TeraWulf is the first subsidized loan
Patrick Fleury, TeraWulf’s chief financial officer, 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 files. They often carry variable interest rates, which can increase borrowing costs when benchmark interest rates rise.
The Company may combine the loan with high-yield bonds to finance construction on its data-evoked campus in Hawesville, Kentucky. However, TeraWulf has not announced final terms, interest rates or closing date.
The reported increase of $3.5 billion remains subject to market conditions. Neither TeraWulf nor Morgan Stanley had publicly made a detailed financing announcement at press time.
The humanitarian lease targets revenues of $19 billion
Funding follows TeraWulf 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 loads. Initial capability is expected to become operational in the second half of 2027, with full deployment targeted for early 2028.
TeraWulf estimates that the lease will generate approximately $19 billion in contracted revenue during its initial term. The company also said the contract will be backed by an investment-grade credit profile.
As previously reported by crypto.news, TeraWulf shares rose After the company revealed the Anthropy deal. The agreement gives the former Bitcoin-focused operator a long-term source of revenue for its contracted AI infrastructure.
However, the projected $19 billion represents expected revenue over 20 years and not an upfront payment. Construction, financing and operating costs will affect the amount that ultimately reaches TeraWulf.
Previous debt funded AI expansion
TeraWulf has already used senior debt offerings to build its high-performance computing operations. In October 2025, its subsidiary priced $3.2 billion of senior secured notes.
The bonds carry an annual interest rate of 7.75% and mature in 2030. TeraWulf used the proceeds to finance part of its Lake Mariner data center expansion in New York.
The Company subsequently raised additional capital through convertible debt and other credit facilities. Kentucky’s planned funding would increase the amount of money borrowed to support its transition to AI computing.
Moreover, Terawolf is Among the many Bitcoin miners moving to artificial intelligence and high-performance computing. Mining companies can reuse access to power, land and cooling systems to meet growing data center demand.
The AI pivot raises new financial questions
TeraWulf previously generated most of its income through Bitcoin mining. However, the company now describes itself as an energy infrastructure operator serving AI and high-performance computing clients.
Q1 2026 results showed that more than 50% of revenue came from HPC hosting. The company said the contracted leases could reduce its dependence on Bitcoin prices and mining difficulty.
However, expansion requires significant upfront spending. TeraWulf must build a campus in Kentucky before receiving the full rental income expected from Anthropic.
The company also faced questions about construction costs, internal stock sales and its long-term financing model. Customers remain responsible for servers, processors and technology upgrades, while TeraWulf provides the power and physical infrastructure, Florey argued.
