Bitcoin miner TeraWulf is seeking $3.5 billion in debt to expand its Justified Data campus in Kentucky. The site is leased to artificial intelligence company Anthropic under a long-term agreement. The financing could begin later this year, according to a Bloomberg report.
Morgan Stanley is leading the proposed funding effort, Chief Financial Officer Patrick Fleury said. The package may include leveraged loans and high-yield bonds, according to the report. It would also mark the company’s first move into the leveraged loan market.
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How Anthropic’s Lease Supports TeraWulf’s Expansion
The plan follows a 20-year lease signed days earlier with Anthropic for the Hawesville facility. The agreement shows how demand for AI computing is creating new funding options. Data center operators are using long contracts to support major construction projects.
The data center Justified Data in Hawesville, Kentucky, is being built to serve as a large-scale data center for artificial intelligence and high-performance computing.
The first phase of operations is forecast to be at least in the second half of 2027, while the entire project is estimated to reach completion by early 2028.
The company estimates the total revenue generated by the Anthropic lease at around $19 billion and assumes it is connected to the initial term of the contract. TeraWulf needs to build the campus to receive the full lease amount.
The new debt raise comes after two other financings of the firm. In December 2025, the firm raised $1.3 billion, and in October 2025, it raised $3.2 billion. These funds were needed to finance the transition to large digital infrastructure projects.
What TeraWulf Says About Its Infrastructure Model
Recently, the firm came into the spotlight due to questions regarding insider stock selling and shareholder alignment. Blocksbridge Consulting mentioned TeraWulf in its reports on Thursday while talking about scrutiny within the sector of Bitcoin miners.
Fleury challenged a short-seller’s assumption about high maintenance costs during his appearance on the Tuesday McNallie Money podcast.
Fleury noted that the firm offers electricity and facility infrastructure services to its clients. Servers, computing equipment, and any future upgrade technologies will be the client’s responsibility.
Why TeraWulf Sees Growth in Long-Term Leases
In addition, the leases offered by the firm lower the recurring costs of replacement and reconfiguration. This arrangement helps the firm cut down costs associated with the conventional data centers. It also provides more clarity in the revenue visibility over time.
Previously, TeraWulf made most of its revenue through Bitcoin mining. It now calls itself a provider of energy infrastructure services for AI and high-performance computing clients. HPC hosting accounted for more than half of the revenue in the first quarter of 2026.
However, the company said that leasing contracts may help it avoid the risk of fluctuations in Bitcoin prices and mining difficulty. Nonetheless, the Kentucky project needs considerable investment before earning any meaningful revenue.
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