TeraWulf announced a $3.5 billion debt raise to expand its Anthropic-leased Kentucky AI data center campus.

Bitcoin miner TeraWulf is seeking $3.5 billion in debt to expand its Justified Data campus in Hawesville, Kentucky, which is leased to artificial intelligence company Anthropic under a 20-year long-term agreement. Morgan Stanley is leading the proposed funding effort, according to Chief Financial Officer Patrick Fleury. The financing package may include leveraged loans and high-yield bonds and would mark the company's first move into the leveraged loan market, with funding potentially beginning later this year.

The data center is being built to serve as a large-scale facility for artificial intelligence and high-performance computing. The Anthropic lease represents approximately 401 megawatts of critical IT capacity and an estimated $19 billion in contracted revenue over the initial term. The first phase of operations is forecast for the second half of 2027, with the entire project estimated to reach completion by early 2028. TeraWulf must complete construction to receive the full lease amount.

This financing follows two recent capital raises: $1.3 billion in December 2025 and $3.2 billion in October 2025, funds that have been allocated to finance the company's transition into large digital infrastructure projects. The leasing arrangement with Anthropic lowers recurring costs associated with replacement and reconfiguration while providing revenue clarity over time, helping the firm avoid the risks of Bitcoin price and mining difficulty fluctuations.

TeraWulf has shifted its business model from Bitcoin mining, which previously generated most of its revenue, to providing energy infrastructure services for AI and high-performance computing clients. The company offers electricity and facility infrastructure; clients retain responsibility for servers, computing equipment, and future technology upgrades. HPC hosting accounted for more than half of the company's revenue in the first quarter of 2026.

The financing announcement comes amid increased scrutiny of Bitcoin miners in the sector. During a recent podcast appearance, CFO Fleury addressed concerns raised by short-sellers regarding maintenance costs, emphasizing the distinction between the company's infrastructure responsibilities and client obligations.