Bitcoin mining and data center company TeraWulf is reportedly preparing to raise about $3.5 billion in debt to fund an artificial intelligence campus leased by Anthropic.
Summary
- TeraWulf reportedly seeks $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 leveraged loans and high-yield bonds, according to a Bloomberg report. Morgan Stanley is expected to lead the transaction, which could launch later in 2026.
TeraWulf considers first leveraged loan
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 usually serve companies with high debt levels or below-investment-grade credit profiles. They 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. However, TeraWulf has not announced final terms, interest rates or a closing date.
The reported $3.5 billion raise remains subject to market conditions. Neither TeraWulf nor Morgan Stanley had publicly issued a detailed financing announcement at the time of publication.
Anthropic lease targets $19B in revenue
The 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 about 401 megawatts of critical computing load. Initial capacity is expected to begin operating 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 over its initial term. The company also said the contract would receive support from an investment-grade credit profile.
As previously reported by crypto.news, TeraWulf shares rose after the company disclosed the Anthropic deal. The agreement gives the former Bitcoin-focused operator a long-term source of contracted AI infrastructure revenue.
Still, the projected $19 billion represents revenue expected over 20 years rather than an upfront payment. Construction, financing and operating costs will affect the amount that ultimately reaches TeraWulf.
Previous debt financed AI expansion
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.
The notes carry a 7.75% annual interest rate and mature in 2030. TeraWulf used the proceeds to finance part of its Lake Mariner data center expansion in New York.
The company later raised additional capital through convertible debt and other credit facilities. Its planned Kentucky financing would further increase the amount of borrowed funds supporting its move into AI computing.
Moreover, TeraWulf is among several Bitcoin miners moving into AI and high-performance computing. Mining companies can reuse access to power, land and cooling systems to meet growing data center demand.
AI pivot brings 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.
Its first-quarter 2026 results showed that more than 50% of revenue came from HPC hosting. The company said contracted leases could reduce its 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.
The company has also 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.
