Terawulf Adds $500M Bridge Loan for Kentucky AI Data Center as Debt-Fueled HPC Pivot Deepens

Terawulf has added another layer of debt to fund its AI buildout, entering a 364-day, $500 million delayed-draw bridge loan to finance construction of its data center project in Hawesville, Kentucky.

According to Terawulf’s filing on Monday, the borrowings will price at either Term SOFR plus 2.75 percentage points or a base rate plus 1.75 points, and the agreement requires Terawulf to maintain at least $100 million of liquidity. Based on current benchmark levels, the facility would carry an effective borrowing cost of roughly about 8% under the SOFR option, or around 10% if priced off the base rate.

The bridge loan extends a financing push that has already reshaped Terawulf’s balance sheet as it pivots from bitcoin mining toward high-performance computing. In October, the company’s WULF Compute unit priced $3.2 billion of 7.75% senior secured notes due 2030 to help fund the Lake Mariner data center expansion in New York. Later that month, Terawulf closed a separate $1.025 billion offering of 0% convertible senior notes due 2032, saying the proceeds would help fund construction of a data center campus in Abernathy, Texas and support general corporate purposes. 

Terawulf then followed with another debt deal at year-end. On Dec. 29, Flash Compute, a joint-venture vehicle tied to Terawulf’s Abernathy project with Fluidstack, completed a $1.3 billion private offering of 7.25% senior secured notes due 2030 to finance construction of the Abernathy HPC campus in Texas. 

By late February, the company said it had completed about $6.5 billion in long-term financings during 2025 and had signed more than $12.8 billion in long-term, credit-enhanced customer contracts. Terawulf also said its contracted HPC platform now spans 522 critical IT megawatts across Lake Mariner and the Abernathy campus, while legacy bitcoin mining is being operated more opportunistically.