TeraWulf Secures $3 Billion for Data Center Expansion with Morgan Stanleys Support Text: TeraWulf mining company will raise approximately $3 billion for the construction of data centers through a Google-supported structure. Bloomberg reported this information from the companys CFO Patrick Fleri.

Mining company TeraWulf is set to raise approximately $3 billion for the construction of data centers through a Google-backed structure. This information was shared by the firm’s CFO, Patrick Fleury, according to a report by Bloomberg.

The potential deal is being managed by the financial conglomerate Morgan Stanley. Fleury mentioned that it could come to fruition as early as October, potentially in the form of high-yield bonds or a loan utilizing borrowed funds.

Currently, rating agencies are assessing the transaction with ratings ranging from BB to CCC, which is typically associated with «junk» debt. Google’s involvement is expected to enhance the rating.

In August, the cloud AI platform Fluidstack opted to increase its utilization of TeraWulf’s data center located in New York. Google provided financial guarantees totaling $3.2 billion. In exchange, the tech giant secured 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 guaranteed that the UK startup would meet obligations worth $1.4 billion in return for a 5.4% equity stake in the miner.

According to Bloomberg, the boom in the AI sector has led to an unprecedented shortage of data center space. The search for sites has drawn many professionals to bitcoin miners, who already possessed the necessary resources and were seeking more efficient ways to leverage them.

One of the largest transactions in this direction was the $9 billion acquisition of the mining center operator Core Scientific by AI computing power provider CoreWeave, as reported here.

Analysts from JPMorgan and Citigroup have raised their price targets for bitcoin miner Riot Platforms amid the company’s shift toward high-performance computing. This was reported by CoinDesk.

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

The bank analysts downgraded their rating for IREN to «underperform» and for CleanSpark to «neutral.»

JPMorgan assesses the likelihood of Riot, Cipher, and IREN finalizing new short-term agreements for equipment placement to service AI at 50%. Drawing from the CoreWeave and Core Scientific deal, the bank’s specialists believe that the value of such contracts may range from $3.7 to $8.6 million per megawatt of provided capacity.

It bears mentioning that CoreWeave used to engage in cryptocurrency mining before transitioning to the AI sector. In March, the company entered into a partnership agreement with OpenAI valued up to $11.9 billion.