TeraWulf Seeks to Raise $3 Billion... Google, Morgan Stanley Participate

Cryptocurrency mining firm TeraWulf is expected to raise about $3 billion to expand its data centers.

On the 25th (local time), Bloomberg reported that Google is participating in the fundraising and Morgan Stanley is participating as the lead manager. Patrick Flury, TeraWulf Chief Financial Officer (CFO), said, "The deal could be launched around October as a high-yield bond or a leveraged loan."

Credit rating agencies are expected to rate the raise at junk-bond levels between BB and CCC. However, because Google agreed to backstop the deal, there is a possibility the credit rating could be upgraded. Google provided an additional guarantee of $1.4 billion, increasing total backstop to $3.2 billion, and through this increased TeraWulf's stake from 8% to 14%. A backstop means that if investor demand is insufficient, a large company or financial institution takes on the remaining amount to stabilize the deal.