Key Highlights
- TeraWulf plans to secure approximately $3.5 billion through leveraged loans and high-yield bonds to construct a Kentucky data center complex
- Morgan Stanley has been tapped to spearhead the financing initiative, set to commence later this year
- The company inked a two-decade lease agreement with Anthropic for the Kentucky property, anticipated to yield roughly $19 billion in total revenue
- Morgan Stanley maintained its Overweight stance while upgrading the price target from $66.50 to $72
- WULF shares advanced 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 financing to construct an extensive data center complex in Kentucky — with a major client already committed: Anthropic.
WULF shares posted a 2.43% gain, reaching $23.39 during Thursday’s market activity.
The capital raise will combine leveraged loans with high-yield bond offerings. According to Chief Financial Officer Patrick Fleury, Morgan Stanley will spearhead the transaction, which is slated to commence within the calendar year.
This represents TeraWulf’s debut in the leveraged loan arena. The firm had previously issued $1.3 billion through high-yield debt instruments in December, followed by $3.2 billion in October, establishing itself as the first cryptocurrency mining operation to access the junk bond marketplace.
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 being developed in Hawesville, situated approximately one hour southwest of Louisville.
According to Fleury, the agreement is projected to produce approximately $19 billion in guaranteed revenue streams and features two additional five-year renewal provisions. The site will provide 401 megawatts of artificial intelligence computing power, with full operations scheduled to begin in the latter part of 2027.
Bloomberg reported last month that Anthropic has additionally committed to leasing computing hardware at two separate TeraWulf data center locations.
Fleury indicated that numerous lenders who backed TeraWulf’s $250 million revolving credit facility earlier in the year may also join the Justified Data financing round.
Morgan Stanley Increases Target Price
On Thursday, Morgan Stanley reaffirmed its Overweight recommendation on WULF while elevating the price objective from $66.50 to $72, pointing to the company’s expanding artificial intelligence infrastructure development portfolio.
The analyst’s bullish revision provided additional momentum to shares that had already been trending upward since the Anthropic lease disclosure.
Divesting Bitcoin Mining Operations
TeraWulf is simultaneously divesting its 50.1% ownership in the Abernathy Joint Venture — liquidating approximately $450 million at a favorable valuation. This transaction emphasizes the firm’s strategic transition from cryptocurrency mining toward AI-focused data center operations.
This transformation hasn’t been entirely smooth sailing. Earlier in the week, WULF encountered pressure from underwhelming preliminary second-quarter earnings from Samsung, news that Chinese startup DeepSeek is developing proprietary AI inference chips, and Meta Platforms’ intentions to launch a rival cloud infrastructure service. Declining Bitcoin valuations further dampened investor sentiment.
Short interest in TeraWulf declined modestly, dropping from 108.78 million shares to 108.65 million during the latest reporting cycle. This represents 25.82% of the publicly tradable float being held in short positions. Based on the current average daily trading volume of 26.35 million shares, short sellers would require approximately 4.12 days to exit their positions completely.
Morgan Stanley has orchestrated all of TeraWulf’s prior bond issuances and has maintained ongoing conversations with company leadership regarding loan market opportunities for an extended period.
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