WULF Stock Jumps 7% — TeraWulf’s $3.5B AI Data Centre Plan Has Retail Investors Watching

The company is looking to tap leveraged loans and high-yield bonds after securing a long-term lease with Anthropic.

• TeraWulf plans to raise around $3.5 billion in debt to fund a new AI-focused data centre campus in Kentucky.
• The financing package is expected to include the company’s first leveraged loan and high-yield bonds, with Morgan Stanley leading the deal.
• A newly signed 20-year lease with Anthropic is projected to generate around $19 billion in revenue over its term.

TeraWulf Inc. (WULF) shares jumped nearly 7% on Thursday after a report said the company plans to raise around $3.5 billion in debt to finance an Anthropic-leased data centre campus in Kentucky. The financing would mark TeraWulf's first-ever foray into the leveraged loan market.

WULF’s $3.5-Billion Financing Package

TeraWulf plans to raise around $3.5 billion in debt, including its first leveraged loan, to finance the new data centre campus in Kentucky. The deal is expected to launch this year, with Morgan Stanley leading the financing effort, according to Chief Financial Officer Patrick Fleury, reported Bloomberg.

The potential transaction would also include high-yield bonds. TeraWulf sold $1.3 billion of such debt in December and $3.2 billion in October, stated the Bloomberg report.

Anthropic Deal Drives AI Push

TeraWulf, which has moved away from its crypto roots to focus on developing artificial intelligence infrastructure, signed a 20-year lease with Anthropic PBC on Monday for its Kentucky facility. The deal is reportedly expected to generate about $19 billion in revenue and includes two five-year extension options.

The campus, known as Justified Data, is being built in Hawesville, about an hour from Louisville. Anthropic has also agreed to lease computer chips at two other TeraWulf data centres, Bloomberg reported in June.

Morgan Stanley’s Role

Morgan Stanley has led TeraWulf’s bond offerings, and the companies have discussed tapping the leveraged loan market. Many of the lenders that participated in TeraWulf’s $250-million revolving credit line earlier this year could also be involved in the Justified Data deal, Fleury said, reported Bloomberg.

Earlier on Wednesday, Morgan Stanley raised its price target on TeraWulf to $72 from $66.50, implying more than 215% upside from the stock’s last close. The firm also maintained an ‘Overweight’ rating on the shares, according to TheFly.

WULF Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment for WULF was ‘extremely bullish,’ unchanged in the past 24 hours, while message volume was ‘extremely high’ at the time of writing.

Over the past seven days, message volume for the stock has surged 191%, while the ticker’s watcher base has risen 4.6% in the same period, indicating steady growth of retail interest in the stock.

One retail trader on Stocktwits predicted WULF could climb to $45 at least by end of this month.

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Morgan Stanley’s $72 price target, too, was a key talking point. A retail trader said WULF could climb “3X from here to at least $70 which perfectly aligns with the Morgan Stanley target of $72.”

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The WULF stock has surged nearly 108% year-to-date.

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