Crypto Miner TeraWulf to Raise $3B in Google-Backed Debt Deal for Data Center Expansion

TeraWulf (WULF), a cryptocurrency mining firm, is preparing to raise $3 billion through a debt deal backed by Google to expand its data center operations. The funding, arranged by Morgan Stanley, may launch as early as next month via high-yield bonds or leveraged loans. Google's involvement could bolster TeraWulf's credit rating, providing a competitive edge in the AI infrastructure race.

The AI industry's relentless demand for data centers, chips, and power has drawn unlikely allies in crypto miners, whose energy-intensive setups can be repurposed for AI workloads. Google recently increased its financial commitment to TeraWulf to $3.2 billion, securing a 14% stake in the company. This partnership already facilitated the expansion of AI cloud platform Fluidstack at a TeraWulf-run New York data center in August.

Other crypto firms are following suit. Cipher Mining inked a similar agreement with Google and Fluidstack this week, with Google backstopping $1.4 billion in obligations and taking an equity position. TeraWulf shares dipped 1.3% during Friday's session, holding steady in after-hours trading.