TeraWulf (WULF) Stock Rises on $3.5 Billion Debt Raise for Anthropic Data Center

TLDR

• TeraWulf is raising ~$3.5 billion in debt — leveraged loans and high-yield bonds — to build a data center campus in Kentucky
• Morgan Stanley will lead the financing, expected to launch this year
• TeraWulf signed a 20-year lease with Anthropic for the Kentucky facility, projected to generate ~$19 billion in revenue
• Morgan Stanley reiterated its Overweight rating and raised its price target from $66.50 to $72
• WULF stock was up 2.43% at $23.39 on Thursday

TeraWulf (WULF) is moving fast. The company is preparing to raise approximately $3.5 billion in debt to build a massive data center campus in Kentucky — and it has a big-name tenant already locked in: Anthropic.

TeraWulf Inc., WULF

WULF stock was trading up 2.43% at $23.39 on Thursday.

The financing will include both leveraged loans and high-yield bonds. Morgan Stanley is set to lead the effort, according to Chief Financial Officer Patrick Fleury. The transaction is expected to launch this year.

This marks TeraWulf’s first entry into the leveraged loan market. The company previously sold $1.3 billion in high-yield debt in December and $3.2 billion in October, becoming the first bitcoin miner to tap the junk bond market.

Earlier this week, TeraWulf signed a 20-year lease agreement with Anthropic for the Kentucky facility, called Justified Data. The campus is under construction in Hawesville, about an hour southwest of Louisville.

The deal is expected to generate around $19 billion in contracted revenue and includes two five-year extension options, Fleury said. The campus will deliver 401 megawatts of AI computing capacity, with operations beginning in late 2027.

Anthropic has also agreed to lease computer chips at two other TeraWulf data centers, Bloomberg reported last month.

Fleury noted that many lenders who participated in TeraWulf’s $250 million revolving credit line earlier this year could also participate in the Justified Data financing.

Morgan Stanley Lifts Price Target

On Thursday, Morgan Stanley reiterated its Overweight rating on WULF and raised its price target from $66.50 to $72, citing the company’s growing AI infrastructure pipeline.

The analyst upgrade added fuel to a stock that had already been climbing following the Anthropic lease announcement.

Selling Bitcoin Mining Stake

TeraWulf is also selling its 50.1% stake in the Abernathy Joint Venture — monetizing roughly $450 million at a premium. The move underlines the company’s pivot away from its cryptocurrency roots toward AI data center infrastructure.

That shift hasn’t been without some turbulence. Earlier this week, WULF faced headwinds from disappointing preliminary Q2 results from Samsung, reports of Chinese startup DeepSeek building its own AI inference chip, and Meta Platforms planning a competing cloud infrastructure business. A dip in Bitcoin prices also weighed on sentiment.

Short interest in TeraWulf fell slightly, from 108.78 million to 108.65 million in the most recent reporting period. That leaves 25.82% of publicly available stock sold short. At the recent average daily trading volume of 26.35 million, short sellers would need about 4.12 days to cover their positions.

Morgan Stanley has led all of TeraWulf’s previous bond offerings and has been in discussions with the company about entering the loan market for some time.

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