TeraWulf Plans $3 Billion Debt Raise Backed by Google
Crypto mining firm TeraWulf has announced plans to secure $3 billion in debt financing to expand its data center network. Backed by a $3.2 billion support facility from Google, the deal is being arranged with Morgan Stanley and could launch next month through high-yield bonds or leveraged loans.
AI Infrastructure Partnership
Google, which currently holds a 14% equity stake in TeraWulf, will provide both financial backing and cloud integration, enabling joint ventures with AI firms. Industry observers note that the overlap between crypto hashing and AI computational requirements makes such partnerships increasingly strategic. Fluidstack recently expanded into TeraWulf’s New York facility, illustrating the model’s viability.
Credit and Market Impact
Credit rating agencies are evaluating TeraWulf’s leverage metrics, with Google’s involvement expected to bolster TeraWulf’s credit profile. Despite a modest 1.3% share price dip following the announcement, investors view the move as a long-term value enhancer. Secured debt issuance at AI-industry yields could set a benchmark for other mining companies seeking non-dilutive capital.
Broader Sector Implications
TeraWulf’s initiative signals a broader trend of crypto miners diversifying into AI and data center services. As demand for AI training and inference grows, power-intensive mining assets present an underutilized resource. TeraWulf aims to capitalize on this synergy, positioning itself as a hybrid tech and crypto infrastructure provider.
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