TeraWulf Inc. is exploring the leveraged loan market to fund its expansion into artificial intelligence infrastructure. The data center firm is collaborating with Morgan Stanley and other banks to develop these debt products.
This initiative follows a $3.2 billion high-yield bond sale. TeraWulf completed that offering eight months ago to expand its Lake Mariner data center in New York.
The previous bond offering marked the first of its kind for a cryptocurrency miner. Google provided a backstop for that deal to help drive investor demand.
TeraWulf is currently pivoting from bitcoin mining toward high-performance computing and AI infrastructure. This transition requires significant capital to compete in the intensive data center sector.