Structure and Timing of the Debt Offering
Crypto mining firm Terawulf Inc. is preparing to raise approximately $3 billion to expand its data center footprint, according to CFO Patrick Fleury. The financing structure, supported by Google, reflects the growing convergence between crypto infrastructure and artificial intelligence (AI) demands.
According to a Bloomberg report, U.S. multinational investment bank Morgan Stanley is arranging the potential transaction, which could launch as early as October in either the high-yield bond or leveraged loan markets. While credit rating agencies are evaluating the deal—with expectations ranging from BB to CCC—Google’s backstop could elevate the credit profile, making the offering more attractive to institutional investors.
The AI boom has triggered an unprecedented scramble for data center space, graphics processing unit (GPU) chips, and reliable electricity—resources that crypto mining firms like Terawulf already possess. As a result, crypto companies are repositioning themselves as key players in the next wave of digital transformation.
With this deal, Terawulf follows in the footsteps of another crypto mining firm, Cipher Mining Inc., which announced a colocation agreement with Fluidstack and Google this week. Under this deal, Cipher will provide data center capacity, while Google backs $1.4 billion of Fluidstack’s obligations and acquires 24 million shares in Cipher, representing 5.4% of pro forma equity stake.
Morgan Stanley, which advised on both transactions, is expected to lead Cipher’s upcoming debt capital markets deal. The bank recently arranged an $850 million convertible bond for Terawulf and followed up with an $800 million convertible offering for Cipher.
Meanwhile, the Bloomberg report revealed that Terawulf’s New York-based data center recently attracted expansion interest from Fluidstack. In support of this and other initiatives, Google has increased its financial commitment, adding a $1.4 billion backstop to bring its total support to $3.2 billion. The move also boosted Google’s equity stake in Terawulf from 8% to 14%.
While terms of Terawulf’s $3 billion raise are still under negotiation, the deal underscores a broader trend: crypto mining firms are evolving into foundational infrastructure providers for AI and cloud computing.
