TeraWulf Secures $3 Billion for Data Center Expansion with Morgan Stanley’s Backing Текст: TeraWulf, a mining company, is set to raise approximately $3 billion for data center construction through a Google-backed structure, as reported by Bloombergs financial director Patrick Fleri.

The mining firm TeraWulf is set to secure approximately $3 billion for the construction of data centers through a Google-backed structure. This information was shared by the company’s CFO, Patrick Fleri, as reported by Bloomberg.

Morgan Stanley is facilitating the potential deal. Fleri indicated that the agreement could be finalized as early as October in the form of high-yield bonds or loans utilizing borrowed capital.

Rating agencies are currently evaluating the deal, assessing it within a range from BB to CCC, a classification typically associated with «junk» bonds. The involvement of Google is anticipated to bolster the rating.

In August, the AI cloud platform Fluidstack decided to increase its utilization of TeraWulf’s data center located in New York. Google provided financial guarantees totaling $3.2 billion, in exchange for an option to acquire a 14% stake in the miner.

In September, Google assisted Fluidstack in securing a lease agreement with another cryptocurrency miner, Cipher Mining. The American corporation ensured that the English startup fulfills obligations amounting to $1.4 billion in return for a 5.4% equity stake in the miner.

Bloomberg noted that the surge in the AI sector has led to an unprecedented shortage of data center space. The search for locations has directed many specialists to Bitcoin miners, who already possessed the necessary resources and were seeking more profitable ways to utilize them.

One of the largest transactions in this space was the acquisition of the mining center operator Core Scientific by the AI computing provider CoreWeave for $9 billion.

JPMorgan and Citigroup analysts have raised their price forecasts for the Bitcoin miner Riot Platforms as the company transitions into high-performance computing. CoinDesk reported on this development.

Experts have assigned the company’s stocks a «buy» rating. They have also maintained similar ratings for shares of Cipher Mining and MARA Holdings.

The rating for IREN was downgraded to «underperform,» while CleanSpark’s rating was adjusted to «neutral.»

JPMorgan estimates a 50% likelihood of Riot, Cipher, and IREN concluding new short-term agreements for equipment deployment to support AI needs. Drawing from the CoreWeave and Core Scientific transaction, the bank’s specialists believe such contracts could be valued between $3.7 million and $8.6 million per megawatt of provided capacity.

It’s worth noting that CoreWeave was also involved in cryptocurrency mining before shifting to the AI sector. In March, the company entered into a partnership agreement with OpenAI worth up to $11.9 billion.