Key Highlights
- TeraWulf plans to secure approximately $3.5 billion through leveraged loans and high-yield bonds for Kentucky data center development
- Morgan Stanley to spearhead the financing initiative, scheduled to commence this year
- A 20-year lease agreement with Anthropic for the Kentucky campus is expected to deliver roughly $19 billion in total revenue
- Morgan Stanley maintained its Overweight stance while boosting the price target from $66.50 to $72
- WULF shares advanced 2.43% to $23.39 during Thursday’s trading session
TeraWulf (WULF) is accelerating its expansion strategy. The enterprise is gearing up to secure roughly $3.5 billion in debt capital to construct an extensive data center complex in Kentucky — with Anthropic already confirmed as its anchor tenant.
WULF shares registered a 2.43% increase to $23.39 during Thursday’s market activity.
The capital structure will combine leveraged loans with high-yield bond offerings. According to Chief Financial Officer Patrick Fleury, Morgan Stanley has been designated to orchestrate the funding arrangement. The transaction is anticipated to commence within the calendar year.
This represents TeraWulf’s inaugural venture into leveraged loan financing. The organization previously issued $1.3 billion in high-yield securities during December and another $3.2 billion in October, establishing itself as the pioneering bitcoin mining company to access the junk bond marketplace.
This week, TeraWulf finalized a two-decade lease contract with Anthropic for the Kentucky installation, designated as Justified Data. The site is currently being developed in Hawesville, situated approximately one hour southwest of Louisville.
According to Fleury, the arrangement is projected to produce approximately $19 billion in guaranteed revenue and features two additional five-year renewal provisions. The facility will provide 401 megawatts of AI processing power, with initial operations targeted for late 2027.
Bloomberg disclosed last month that Anthropic has additionally committed to leasing computing hardware at two separate TeraWulf facilities.
Fleury indicated that numerous financial institutions that contributed to TeraWulf’s $250 million revolving credit facility earlier this year may also engage in the Justified Data financing round.
Morgan Stanley Elevates Valuation Target
Thursday saw Morgan Stanley reaffirm its Overweight assessment on WULF while increasing its valuation target from $66.50 to $72, pointing to the company’s expanding AI infrastructure portfolio.
The analyst’s revised outlook provided additional momentum to shares that were already climbing following the Anthropic lease disclosure.
Divesting Bitcoin Mining Assets
TeraWulf is simultaneously divesting its 50.1% ownership in the Abernathy Joint Venture — liquidating approximately $450 million at a favorable valuation. The transaction emphasizes the company’s strategic transformation from cryptocurrency operations toward AI-focused data center infrastructure.
This transition has encountered some challenges. Earlier in the week, WULF experienced pressure from Samsung’s underwhelming preliminary Q2 performance, news regarding Chinese technology firm DeepSeek developing proprietary AI inference processors, and Meta Platforms announcing plans for a rival cloud infrastructure venture. Declining Bitcoin valuations also dampened investor enthusiasm.
Short interest in TeraWulf decreased modestly, dropping from 108.78 million to 108.65 million shares during the latest reporting cycle. This represents 25.82% of the publicly traded float held in short positions. Based on the current average daily volume of 26.35 million shares, short sellers would require approximately 4.12 days to exit their positions.
Morgan Stanley has orchestrated all previous bond issuances for TeraWulf and has maintained ongoing dialogue with the company regarding loan market participation for an extended period.
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