Bitcoin miner TeraWulf is taking another decisive step toward diversifying its business. The company announced plans to raise approximately $3.5 billion in debt financing to build the Justified Data campus in Kentucky. This facility has already been leased by Anthropic, an artificial intelligence development company.
TeraWulf CFO Patrick Fleury confirmed that Morgan Stanley will act as the deal's arranger. The financing structure will include loans with higher levels of leveraged risk and high-yield bonds. This marks TeraWulf's first foray into this type of loan market, highlighting investors' growing appetite for projects at the intersection of mining and AI.
Project Scale and Timeline
The funds will be directed toward developing the campus in Horseville. Previously, on July 6, TeraWulf signed a 20-year lease agreement with Anthropic, which includes two five-year renewal options. The facility is expected to provide approximately 401 MW of critical IT load. Initial capacity is planned to launch in the second half of 2027, with full operational levels expected by early 2028.
According to TeraWulf's estimates, the contract with Anthropic will generate approximately $19 billion in revenue over the initial lease term. For comparison, this is nearly 100 times the company's current quarterly revenue. Simultaneously, the miner agreed to sell its 50.1% stake in the Abernathy Joint Venture to a group of investors led by Fluidstack for approximately $530 million, freeing up additional capital for the main project.
Junk Bond Market and AI Revenue
Notably, TeraWulf already has experience issuing high-yield bonds: $3.2 billion in October and $1.3 billion in December last year. The company became the first mining firm to enter the "junk" bond market, signaling recognition of its business model by institutional investors.
The trend toward hybridization of the mining business is evident. In the first quarter, TeraWulf generated revenue of $34 million, of which approximately $21 million came from high-performance computing (HPC) services. In May, the company also purchased a site in Eastern Kentucky from Industrial Equity Partners for HPC infrastructure development with a potential capacity of over 1 GW — the project was named Muskie Data Campus.
Expert Commentary from Cryptalist: TeraWulf demonstrates a classic example of a miner evolving into an AI infrastructure provider. $3.5 billion is not just a number but a signal to the market: the future lies in multifunctional data centers where Bitcoin mining and neural network training coexist under one roof. However, the key risk is dependence on a single tenant (Anthropic) and meeting tight construction deadlines. If the project is delayed, the debt burden could become critical.