Crypto mining company TeraWulf (WULF) is arranging a massive $3 billion debt financing package to significantly expand its data center infrastructure, with tech giant Google providing crucial backing. This strategic move comes as competition for AI infrastructure resources intensifies globally.
According to Bloomberg, TeraWulf's CEO Patrick Fleury confirmed the company is collaborating with investment bank Morgan Stanley to structure the funding. The debt issuance, potentially launching next month, may utilize high-yield bonds or leveraged loans to secure capital.
Credit rating agencies are currently assessing the proposed deal. Industry analysts note that Google's substantial support could help TeraWulf achieve a more favorable credit rating than typically available to mining operations.
The artificial intelligence sector's enormous demand for data center capacity, processing chips, and electrical power has created unexpected partnerships with cryptocurrency mining firms. These companies already possess power-intensive infrastructure that can be adapted for AI computational workloads.
Google recently increased its financial commitment to TeraWulf to $3.2 billion and now maintains a 14% ownership stake in the mining company. This backing previously enabled AI cloud provider Fluidstack to expand its operations at a TeraWulf-managed data facility in New York during August.
The trend continues across the industry as Cipher Mining recently established a similar agreement with Google and Fluidstack. Google will guarantee $1.4 billion in related obligations and acquire an equity position in Cipher as part of that arrangement.
TeraWulf's stock price experienced a modest decline of approximately 1.3% during Friday's regular trading session, with shares remaining stable in after-hours activity.