TeraWulf Prices Record $3.2B Bond Deal at 7.75%, Betting Big on AI Pivot
TeraWulf has priced its previously announced $3.2 billion senior secured note offering at a 7.75% coupon, locking in the largest debt financing by a Bitcoin mining firm for AI expansion.
The notes, issued through its wholly owned subsidiary WULF Compute LLC, will mature in 2030 and be sold at par to qualified institutional buyers under Rule 144A of the Securities Act. Closing is expected on October 23, subject to customary conditions.
Proceeds will fund the ongoing expansion of TeraWulf’s Lake Mariner data center in Barker, New York — a project the company is transforming into a high-performance computing (HPC) hub for artificial intelligence workloads.
At the 7.75% rate, TeraWulf could face nearly $250 million in annual interest payments, a figure that far exceeds its current revenue base. The company reported about $140 million in total revenue for 2024 and $82 million in the first half of 2025 from bitcoin mining, before accounting for cost of revenue, operating expenses, and selling, general and administrative costs. The scale of the new debt highlights how aggressively TeraWulf is wagering its future on the success of its AI diversification strategy.
The notes are guaranteed by WULF Compute’s subsidiaries and secured by first-priority liens on their assets, including equity interests and a designated lockbox account of Fluidstack USA I Inc. Before completion of the Lake Mariner expansion, Google LLC will pledge warrants to purchase TeraWulf common stock as part of the collateral package — a move that underscores the technology giant’s indirect financial linkage to the project.
TeraWulf’s financing follows its AI colocation partnership with Fluidstack, an infrastructure operator backed by Google, under which the Lake Mariner campus will host GPU clusters for large-scale AI workloads.
The record-sized issuance — more than triple the $1 billion convertible bond offering by IREN earlier this month — positions TeraWulf at the forefront of the Bitcoin mining industry’s shift toward AI and HPC infrastructure. But with the company’s annual interest burden now exceeding its trailing revenue, the success of that transition will determine whether the bet pays off.
