TeraWulf Arranges $3.5 Billion Loan for Kentucky AI Campus

What happened

TeraWulf arranged a $3.5 billion debt raise to fund the buildout of its Justified Data campus in Hawesville, Kentucky. Morgan Stanley is leading the financing, which will combine leveraged loans and high-yield bonds. This is TeraWulf's first entry into the leveraged loan market. The capital will support construction tied to a 20-year lease agreement with Anthropic, signed on July 6, covering approximately 401 megawatts of critical IT capacity. The initial lease term is expected to generate around $19 billion in contracted revenue. Capacity is scheduled to come online in the second half of 2027, with full deployment expected by early 2028. TeraWulf previously raised $3.2 billion in October 2025 and $1.3 billion in December as part of its data center expansion strategy.

Why it matters

The financing represents a major structural shift for TeraWulf, which began as a Bitcoin mining company but is now pivoting toward long-duration AI infrastructure. The Anthropic lease provides a contracted revenue base that extends two decades, offering cash flow visibility unusual for companies in the digital infrastructure space. However, the $3.5 billion leveraged loan also increases execution risk and changes TeraWulf's capital structure significantly. Success depends on the company's ability to deliver the Kentucky campus on schedule and convert the contracted capacity into reliable revenue. The deal signals that TeraWulf is positioning itself as an AI infrastructure provider rather than a cryptocurrency miner, a shift that could redefine how investors value the company's power portfolio and development pipeline.

Bigger picture

TeraWulf is part of a broader trend among former Bitcoin mining companies repurposing or expanding their data center infrastructure to serve AI workloads. The physical assets, power access, and large-scale site development capabilities built for cryptocurrency mining are increasingly being redirected toward high-performance computing customers. Anthropic's willingness to commit to a 20-year, $19 billion lease reflects the scale of infrastructure demand from AI companies. TeraWulf's pivot mirrors moves by other miners entering the AI data center market, though the size of this financing and the duration of the Anthropic contract are among the largest announced to date. Wall Street has responded positively, with Morgan Stanley raising its price target to $72 and reiterating an Overweight rating. TeraWulf shares are up more than 80% year-to-date, reflecting investor enthusiasm for the AI infrastructure opportunity.

What to watch

Investors should monitor the timing and terms of the leveraged loan launch, expected later this year. Key milestones include the start of capacity delivery in the second half of 2027 and full deployment by early 2028. Any delays or cost overruns in the Kentucky buildout could affect TeraWulf's ability to meet its contracted obligations to Anthropic. The company's ability to manage its expanded debt load while continuing to generate cash flow from its remaining Bitcoin mining operations will also be important. Further announcements regarding additional AI infrastructure customers or expansion plans at the Justified Data campus could provide insight into TeraWulf's long-term growth trajectory. Analysts expect the Anthropic relationship to be a central driver of the stock's valuation going forward.