TeraWulf (WULF) is accelerating its transformation from a Bitcoin miner into an AI infrastructure powerhouse. The company is preparing to raise approximately $3.5 billion in debt to construct a massive data center campus in Hawesville, Kentucky. The financing, to be led by Morgan Stanley, will include both leveraged loans and high-yield bonds—marking TeraWulf’s debut in the leveraged loan market. The transaction is expected to launch this year, and many lenders from the firm's earlier $250 million revolving credit line are expected to participate.
The Kentucky facility, named Justified Data, has a 20-year lease agreement with AI firm Anthropic, with two five-year extension options. The deal is projected to generate around $19 billion in contracted revenue and will deliver 401 megawatts of AI computing capacity, with operations starting in late 2027. Anthropic will also lease chips at two other TeraWulf data centers. Morgan Stanley reiterated its Overweight rating on WULF and raised its price target from $66.50 to $72, citing the company's growing AI infrastructure pipeline; the stock rose 2.43% to $23.39 on Thursday.
TeraWulf is also selling its 50.1% stake in the Abernathy Joint Venture, monetizing roughly $450 million at a premium, underlining its deliberate shift away from cryptocurrencies. Meanwhile, a new report from U.S. investment bank Compass Point argues that the market is undervaluing Bitcoin miners that are pivoting to AI data center hosting. The bank contends that firms like Applied Digital (APLD), TeraWulf (WULF), and Cipher Mining (CIFR) should no longer be valued solely on Bitcoin-related metrics, but rather as landlords generating predictable rental income from high-demand AI infrastructure. The market currently assigns little to no value to their unleased capacity, despite its cash flow potential once contracted.
The next 24 months are seen as critical, as the industry moves from announcements to construction and operational phases, with execution risk being the primary challenge. Compass Point suggests that successful execution could lead to a significant re-rating of these stocks.
