TeraWulf, a Bitcoin mining company, is reportedly planning to raise approximately $3 billion to fund the expansion of its data centers, with support from Google. According to TeraWulf's Chief Financial Officer, Patrick Fleury, Morgan Stanley is coordinating the potential transaction, which could be introduced to either the high-yield bond or leveraged loan markets as early as October.

Credit rating agencies are currently evaluating where to position the transaction on the scale between BB and CCC ratings, which typically apply to junk-rated debt. However, Google's expected backing of the deal could potentially result in a higher credit rating. Google's financial backing includes a commitment of $1.4 billion, bringing its total support to $3.2 billion.

The growth of the artificial-intelligence (AI) industry has created severe shortages in data-center space, graphics-processing unit (GPU) chips, and access to electricity needed to power these facilities. This scarcity is driving AI companies toward crypto-mining operations, which already possess the necessary infrastructure and are seeking more profitable applications for their resources.

In August 2025, TeraWulf announced a ten-year colocation lease agreement with Fluidstack, an AI infrastructure provider. The deal, worth $3.7 billion in contract revenue, was also backstopped by Google, which took a 14% stake in TeraWulf. Google has now committed $3.2 billion across both deals, showing serious long-term investment in crypto-to-AI infrastructure conversion.

TeraWulf is stepping up to the plate, committing to using mostly zero-carbon energy in its Bitcoin mining operations. With facilities like Lake Mariner powered by nuclear, hydroelectric, and solar energy, TeraWulf is demonstrating that it can be done. They're also upping their game with advanced cooling systems and smart energy management, aiming to set a standard that others in the crypto world might want to follow.

Following the announcement, TeraWulf's stock (WULF) spiked 12% on Thursday, reaching an intraday high of $11.72 before it retreated to end down 3.7% on the day at $10.97 in after-hours trading, according to Google Finance. The company's shares had previously surged by 80% after the initial announcement in August, marking a solid year with a 94% increase in share prices since the beginning of 2025.

The final terms of the transaction remain under negotiation, and there is no certainty that a deal will be completed.