TeraWulf is moving to raise roughly $3 billion in debt to accelerate build-outs of its data-center footprint, in a financing effort backed by Google, the company’s finance chief said in an interview. The structure being explored would fund expansion of TeraWulf’s facilities to serve both AI workloads and crypto mining demand.
According to CFO Patrick Fleury, the firm is evaluating issuance either into the high-yield bond market or through leveraged loans, with Morgan Stanley arranging the potential transaction. Fleury told Bloomberg the deal could be launched as early as October, though negotiations remain ongoing and there is no certainty a deal will close.
TeraWulf’s Google link, prior deals, and capital moves
Google has already materially increased its financial support for TeraWulf: according to reporting, Google boosted a backstop commitment by $1.4 billion, bringing its total backing to roughly $3.2 billion, and its equity stake in TeraWulf rose to about 14% from 8% earlier this year. The company has also attracted strong commercial interest from AI hosting partner Fluidstack, which expanded usage of a TeraWulf-run data center in New York.
TeraWulf is expected to raise approximately $3 billion to support the build-out of its data centers via a structure supported by Google https://t.co/ceLrIX7oRv
— Bloomberg (@business) September 25, 2025
TeraWulf also disclosed plans in August for a $400 million private offering of convertible senior notes due 2031, with proceeds earmarked partly for capped call transactions and partly to fund data-center expansion and corporate needs. If the new $3B financing completes, it would rank among the largest debt deals executed by a crypto miner pivoting into AI infrastructure.
Credit profile, ratings and deal mechanics
Credit-rating agencies are reportedly reviewing the proposed financing, with expectations that the debt could be rated in the BB–CCC range typical of high-yield or “junk” issuers — though Google’s backstop could help secure better pricing or a higher rating band if underwriters and agencies are satisfied. Morgan Stanley is said to be coordinating placement conversations.
Why miners now court AI and hyperscalers
Surging AI demand has created shortages of data-center capacity, GPUs and large blocks of reliable power — assets where large crypto-mining operators already have scale and infrastructure. TeraWulf’s pivot to host AI workloads follows a series of commercial agreements and is part of a broader industry trend in which miners monetize excess capacity and shift toward high-performance computing colocation. Earlier reporting placed TeraWulf’s signed AI/HPC hosting contracts (via Fluidstack) at multibillion-dollar levels and noted plans to deploy over 200 MW of IT load at its Lake Mariner site — figures that helped trigger renewed investor interest.
Risk and outlook
The deal would materially change TeraWulf’s capital structure and risk profile: raising $3 billion of debt in volatile markets carries refinancing and covenant risk, but successful placement — particularly with Google’s support — could fast-track TeraWulf’s transformation into a sizable AI/HPC host while improving revenues beyond bitcoin mining. Company spokespeople did not provide comment to Cryptonews at the time of reporting.
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