Woofun AI reports that TeraWulf, a US-listed Bitcoin mining company, is pursuing a $3.5 billion debt issuance to expand its Justified Data campus in Kentucky, a facility secured under a long-term lease with artificial intelligence firm Anthropic. The financing effort is being led by investment bank Morgan Stanley, according to TeraWulf chief financial officer Patrick Fleury, signaling a strategic pivot toward large-scale infrastructure funding.

The capital raise is structured to include leveraged loans and high-yield bonds, marking TeraWulf’s first entry into the leveraged loan market. This move follows previous financing rounds where the company raised $1.3 billion in December 2025 and $3.2 billion in October 2025. The new debt instrument aims to bridge the gap between current operations and the massive capital expenditure required for the AI campus buildout.

The Justified Data campus in Hawesville, Kentucky, is designed to support AI computing workloads, with initial operations slated for the second half of 2027 and full completion targeted for early 2028. Under the 20-year lease agreement with Anthropic, the facility is projected to generate approximately $19 billion in contracted revenue. Per Woofun AI, this revenue structure provides a predictable cash flow profile distinct from traditional mining volatility.

Despite the substantial contract value, TeraWulf faces ongoing investor scrutiny regarding insider stock sales and shareholder alignment. Bitcoin mining advisory firm Blocksbridge Consulting recently highlighted the company as a case study in the tension between AI-related momentum and governance concerns. Fleury noted that the long-term lease structure mitigates recurring upgrades and reconfiguration costs typically associated with data centers. Comment was sought from TeraWulf and Morgan Stanley but no response was received by publication time.