TeraWulf targets $3.5B debt for Anthropic data center
Bitcoin miner TeraWulf is seeking $3.5 billion in debt to fund an Anthropic data center, illustrating how AI demand is unlocking new capital channels for crypto miners despite lingering investor concerns over their new business model.
TeraWulf is seeking $3.5 billion in debt financing led by Morgan Stanley to expand its Justified Data campus in Kentucky. The facility is leased by artificial intelligence company Anthropic under a 20-year agreement. The transaction is expected to launch this year and could include a combination of leveraged loans and high-yield bonds.
The financing would mark TeraWulf’s first entry into the leveraged loan market, a significant step for a company traditionally associated with Bitcoin mining. It follows previous capital raises of $3.2 billion in October 2025 and $1.3 billion in December 2025. The rapid accumulation of debt underscores how insatiable demand for AI computing capacity is pushing infrastructure operators into broader credit markets.
The Justified Data campus in Hawesville is being developed specifically for heavy AI workloads. Initial operations are expected in the second half of 2027, with full buildout targeted for early 2028. TeraWulf estimates the facility will generate about $19 billion in contracted revenue over the initial lease term. Securing a long-term tenant like Anthropic provides the cash flow visibility required to justify this level of borrowing.
Investor scrutiny grows
Despite the scale of the contracted revenue, TeraWulf's pivot has attracted heavy scrutiny. The company has faced recent investor questions regarding insider stock sales and broader concerns about shareholder alignment. Advisory firm Blocksbridge Consulting recently highlighted TeraWulf as a prime example of the scrutiny facing Bitcoin miners riding AI-related momentum.
Skeptics have also challenged the underlying economics of the AI data center model. A short-seller recently published estimates suggesting TeraWulf would face higher maintenance costs than projected. During a Tuesday episode of the McNallie Money podcast, chief financial officer Patrick Fleury pushed back against that model, emphasizing the company's limited operational responsibilities.
Fleury argued that TeraWulf's strict role is to "provide power and facility infrastructure," while customers bear the burden of "computing equipment and technology upgrades." This structural approach, he said, shields TeraWulf from the "recurring upgrades and reconfiguration costs typically associated with data centers."
However, the combination of massive new debt, recent insider stock sales, and an unproven business model presents a complex risk profile. Leveraged loan and high-yield investors will ultimately have to decide if the $19 billion revenue projection outweighs those structural concerns when the deal comes to market.
