- TeraWulf is seeking to raise $3 billion in debt to expand its data center capacity.
- Google is supporting the deal and now owns a 14% stake in TeraWulf.
- The funding, organized by Morgan Stanley, may be launched as soon as next month.
- Crypto mining firms are repurposing their high-power infrastructure for Artificial Intelligence (AI) workloads.
- Similar agreements with Google and other crypto-native firms are emerging, including a recent deal involving Cipher Mining and Fluidstack.
TeraWulf, a cryptocurrency mining company, plans to raise $3 billion in debt to grow its data center operations. The expansion comes as the need for AI-related infrastructure increases. Google is backing this fundraising effort and has taken a 14% equity stake in TeraWulf.
Morgan Stanley is managing the funding initiative, which could begin next month. The company may use high-yield bonds or leveraged loans to generate the required capital. Credit rating agencies are currently reviewing the deal. Google’s support might help the company obtain a stronger credit rating than usual.
According to TeraWulf CEO Patrick Fleury in a statement to Bloomberg, “The AI industry’s need for more chips, power, and space in data centers is leading to partnerships between technology giants and crypto miners who already have the relevant infrastructure.” Recently, Google raised its backing for TeraWulf to $3.2 billion. This development has also allowed AI cloud company Fluidstack to increase its usage of a TeraWulf-operated data center in New York.
Other crypto-native companies are adopting similar strategies. Cipher Mining recently made an agreement with Google and Fluidstack. As part of this deal, Google will guarantee $1.4 billion in obligations and acquire an equity stake in Cipher Mining.
Shares of TeraWulf fell by about 1.3% during Friday’s trading and remained unchanged after hours. These recent partnerships indicate that crypto mining infrastructure is being shifted to serve the growing AI market.
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