TeraWulf ($WULF) is planning to raise $3.5 billion in debt to construct a data center campus in Kentucky that it is leasing to artificial intelligence startup Anthropic.
The transaction will include both leveraged loans and high-yield bonds, according to TeraWulf. The technology company previously sold $1.3 billion of high-yield debt last December, becoming the first Bitcoin ($BTC) miner to access the junk bond market.
Over the past year, TeraWulf has shifted its focus from cryptocurrency mining to developing artificial intelligence (AI) infrastructure. Earlier in July, TeraWulf signed a 20-year lease agreement with Anthropic for the Kentucky data center facility. The deal is expected to generate $19 billion in revenue for TeraWulf and includes two five-year extension options.
Funding AI Initiatives with Debt
TeraWulf’s Kentucky data center campus is called “Justified Data” and is now under construction in Hawesville, about an hour southwest of Louisville. Anthropic has also agreed to lease computer chips at two other TeraWulf data centers as the AI startup expands aggressively.
TeraWulf isn’t the only company that is tapping debt markets to help fund their AI infrastructure buildout. Amazon ($AMZN) just announced plans to raise another $25 billion through a corporate bond sale. Amazon has already raised $54 billion from bond sales in the U.S. and Europe this year as it looks to spend up to $200 billion on AI infrastructure in 2026.
Nvidia ($NVDA), Alphabet ($GOOGL), and Meta Platforms ($META) have also issued corporate bonds in recent months.
Is WULF Stock a Buy?
TeraWulf’s stock has a consensus Strong Buy rating among 16 Wall Street analysts. That rating is based on 16 Buy recommendations issued in the last three months. The average WULF price target of $38.27 implies 58% upside from current levels.
