TeraWulf Plans $3B Debt Raise With Google Backstop Support

Bitcoin miner TeraWulf is planning to raise approximately $3 billion through Morgan Stanley, with support from Google, to develop data centers aimed at pivoting towards AI. According to finance chief Patrick Fleury, Google's backing includes an additional $1.4 billion commitment, raising the total to $3.2 billion. The funding round might commence as early as October, targeting high-yield bond or leveraged loan markets. Google's involvement could enhance the credit rating of the transaction, although negotiations are ongoing and the deal has not been finalized. TeraWulf's infrastructure and secured power capacity make it well-positioned amid growing demand for GPU chips and electricity access due to the AI boom. In August, TeraWulf also signed a significant colocation lease agreement worth $3.7 billion with Fluidstack, backed by Google as well, indicating a strong investment in the crossover of crypto and AI technologies. Following the initial announcement, TeraWulf's stock saw a significant increase, highlighting market optimism surrounding these moves.

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