TeraWulf expanded its revolving credit line by 60% to about $400 million.

TeraWulf (NASDAQ: WULF) has increased its senior secured revolving credit facility to approximately $400 million from $250 million and removed a cap on letters of credit. The move follows plans to strengthen financing for utility commitments tied to its data center expansion.

The amendment took effect October 23, according to a securities filing. Morgan Stanley Senior Funding serves as administrative and collateral agent. The agreement also allows TeraWulf to seek approximately $150 million in additional commitments through an uncommitted expansion option, which could bring the facility to about $550 million. That increase requires additional lender commitments and the satisfaction of other conditions.

The financing follows an October 5 disclosure in which TeraWulf said it planned to enlarge the revolver and pursue additional senior secured debt to support letters of credit for long-term power-development partnerships with utilities. Letters of credit provide counterparties with bank-backed assurances of payment.

These obligations have already tied up substantial cash. In its second-quarter report, TeraWulf disclosed that it posted $360.7 million in letters of credit in July for power-service and transmission-infrastructure obligations at its Muskie Data Campus in eastern Kentucky. Of that amount, $74 million was issued under the revolver. The remaining $286.7 million was issued under a separate facility backed by $295.3 million in cash collateral.