What happened? TeraWulf plans to raise about $3 billion in debt, backed by Google, to expand its data centers.
TeraWulf told Bloomberg it’s looking to issue roughly $3 billion through high-yield bonds or leveraged loans, with Morgan Stanley arranging the potential deal. Google has increased its backstop commitment and boosted its equity stake, which could help secure better financing terms. Credit agencies are still reviewing the package and expect junk ratings in the BB to CCC range, so the transaction isn’t guaranteed yet.
Who does this affect? Crypto miners, AI cloud companies, investors and lenders are all likely to be impacted.
TeraWulf and other miners like Cipher that are pivoting to host AI workloads would get capital to scale data-center capacity. AI platforms and cloud customers could gain more access to space, chips and power as miners open up facilities for compute. Debt investors and banks underwriting high-yield bonds or leveraged loans would take on more exposure to these power-hungry operators and the risks that come with them.
Why does this matter? The deal could reshape financing and demand dynamics by signaling stronger appetite for data-center capacity and changing how risky miners attract capital.
If the $3 billion raise goes through, it would be one of the biggest debt financings by a crypto miner moving into AI infrastructure and could pull more capital toward similar deals. Google’s backing may lower perceived risk and help tighten yields, but the likely junk ratings mean investors will still demand premium returns, affecting high-yield spreads. Overall, the move could accelerate AI-ready build-outs, shift investment toward power-intensive operators, and influence market pricing and appetite for risky tech and crypto debt.