TeraWulf to Seek $3.5B Debt for Anthropic AI Campus, Shifting From Bitcoin Mining

TeraWulf is lining up roughly $3.5 billion in debt financing to build the Anthropic-leased AI campus at its Justified Data site in Hawesville, Kentucky, Bloomberg reports — a move that marks another big pivot for the former Bitcoin miner into AI and high-performance computing (HPC). What’s being planned - The package could mix leveraged loans and high-yield bonds, with Morgan Stanley expected to lead the transaction if it launches later in 2026. TeraWulf CFO Patrick Fleury has said the company may tap the leveraged loan market for the first time as part of the plan. - No final terms, interest rates or closing date have been announced; the raise is subject to market conditions and neither TeraWulf nor Morgan Stanley had published a formal financing notice at the time of the report. - Note: leveraged loans typically target companies with higher leverage or below-investment-grade credit and often carry variable rates, exposing borrowers to rising interest costs when benchmarks climb. Why the debt TeraWulf will use the proceeds to finance construction of a purpose-built AI campus that Anthropic has leased under a 20-year agreement. The campus is being designed to support roughly 401 megawatts of critical IT load. Initial capacity is expected to come online in the second half of 2027, with full deployment targeted for early 2028. Under the lease, TeraWulf estimates about $19 billion of contracted revenue over the initial term, and says the contract benefits from an investment-grade credit profile — creating a long-duration infrastructure revenue stream tied to an AI customer rather than spot Bitcoin prices. That potential revenue, however, accrues over two decades rather than as an upfront payment, and construction, financing and operating costs will determine how much ultimately flows to TeraWulf. Balance sheet and financing history This would add to an already debt-heavy capital structure. In October 2025, a TeraWulf subsidiary priced $3.2 billion of senior secured notes carrying a 7.75% coupon and maturing in 2030 to help fund the Lake Mariner data center expansion in New York. The company has since raised additional capital through convertible debt and other facilities; the Kentucky financing would further increase borrowed funds backing its AI push. Industry context and company shift TeraWulf is among several Bitcoin miners repurposing power, land and cooling infrastructure for AI and HPC customers. Historically a Bitcoin-mining operator, the company now positions itself as an energy infrastructure provider for AI and high-performance computing. In Q1 2026, more than half of TeraWulf’s revenue reportedly came from HPC hosting, suggesting the Anthropic deal could materially reshape its revenue mix and reduce exposure to Bitcoin price swings and mining difficulty. Risks and scrutiny The strategy requires substantial upfront capital — TeraWulf must build the Kentucky campus before it realizes the full revenue stream from Anthropic. The company has faced investor questions about construction costs, insider stock sales and its long-term funding model. Fleury has emphasized that customers are responsible for servers, processors and technology upgrades, while TeraWulf supplies power and physical infrastructure. What to watch Watch for a formal financing announcement from TeraWulf or Morgan Stanley with deal structure, pricing and timing, and monitor market conditions — especially interest-rate trends — which will shape the cost of any leveraged loans or high-yield bonds that ultimately close.