Key Highlights
- TeraWulf plans to secure approximately $3.5 billion through debt financing — combining leveraged loans with high-yield bonds — for Kentucky data center construction
- Morgan Stanley selected to spearhead the financing initiative, scheduled to commence within the year
- The company secured a two-decade lease agreement with Anthropic for the Kentucky location, anticipated to produce roughly $19 billion in total revenue
- Morgan Stanley maintained its Overweight rating while increasing the price target to $72 from $66.50
- Shares of WULF climbed 2.43% to reach $23.39 during Thursday’s trading session
TeraWulf (WULF) is accelerating its expansion plans. The firm is gearing up to secure roughly $3.5 billion through debt markets to construct an expansive data center complex in Kentucky — with a prominent client already committed: Anthropic.
Shares of WULF advanced 2.43% to $23.39 during Thursday’s market activity.
The capital raise will combine leveraged loans with high-yield bond offerings. Morgan Stanley has been tapped to spearhead the initiative, as confirmed by Chief Financial Officer Patrick Fleury. The financing transaction is projected to begin sometime this year.
This represents TeraWulf’s inaugural venture into leveraged loan financing. The organization previously issued $1.3 billion in high-yield debt during December and another $3.2 billion in October, establishing itself as the first cryptocurrency mining operation to access junk bond markets.
Earlier in the week, TeraWulf formalized a 20-year lease arrangement with Anthropic for the Kentucky installation, designated as Justified Data. The facility is currently under development in Hawesville, situated approximately sixty minutes southwest of Louisville.
The arrangement is projected to yield approximately $19 billion in guaranteed revenue and features two potential five-year extension periods, according to Fleury. The complex will provide 401 megawatts of artificial intelligence computing power, with operational launch targeted for late 2027.
Anthropically has additionally committed to leasing computing chips at two separate TeraWulf data facilities, as Bloomberg disclosed last month.
Fleury indicated that numerous lenders involved in TeraWulf’s $250 million revolving credit facility earlier this year may also join the Justified Data financing round.
Morgan Stanley Increases Price Projection
On Thursday, Morgan Stanley reaffirmed its Overweight stance on WULF while elevating its price projection to $72 from $66.50, highlighting the firm’s expanding AI infrastructure opportunities.
The analyst’s upgraded outlook provided additional momentum to shares that were already gaining ground after the Anthropic lease disclosure.
Divesting Cryptocurrency Mining Operations
TeraWulf is additionally divesting its 50.1% ownership in the Abernathy Joint Venture — liquidating approximately $450 million at favorable terms. The transaction emphasizes the organization’s strategic transition from its digital currency origins toward AI-focused data center operations.
This transformation has encountered some challenges. Earlier in the week, WULF experienced pressure from underwhelming preliminary Q2 earnings from Samsung, news reports about Chinese startup DeepSeek developing proprietary AI inference processors, and Meta Platforms announcing plans for competitive cloud infrastructure services. Declining Bitcoin valuations also contributed to negative sentiment.
Short interest in TeraWulf decreased marginally, dropping from 108.78 million to 108.65 million shares in the latest reporting cycle. This accounts for 25.82% of publicly traded shares being sold short. Based on the recent average daily trading volume of 26.35 million shares, short sellers would require approximately 4.12 days to close their positions.
Morgan Stanley has orchestrated all previous bond issuances for TeraWulf and has maintained ongoing conversations with the company regarding loan market entry for an extended period.
