Google-Backed Crypto Miner TeraWulf Plans $3B Debt-Financed Expansion: Report

TeraWulf plans to raise about $3b to expand its data centers, in a deal supported by Google, according to its finance chief Patrick Fleury.

The debt is expected to be issued either through the high-yield bond market or via leveraged loans, Fleury told Bloomberg in a recent interview.

Morgan Stanley is arranging the potential transaction, which could be launched as early as October.

Credit rating agencies are still reviewing the deal, with expectations that it could fall between BB and CCC, the typical range for junk-rated debt. Google’s backstop could reportedly help secure a higher grade.

Negotiations are ongoing, and there is no guarantee the deal will move forward. TeraWulf didn’t return Cryptonews’ request for comment by press time.

TeraWulf is expected to raise approximately $3 billion to support the build-out of its data centers via a structure supported by Google https://t.co/ceLrIX7oRv

— Bloomberg (@business) September 25, 2025

AI Boom Drives Demand For Data Centers, Puts Crypto Miners In Spotlight

The push comes as demand for artificial intelligence infrastructure has outstripped supply. The rapid rise of AI has created shortages of data center space, graphics processing chips and access to electricity.

Crypto mining firms like TeraWulf, already operating large-scale power-hungry facilities, have become attractive partners for companies seeking to expand into AI computing.

TeraWulf has already seen growing interest in its facilities. In August, Fluidstack, an AI cloud platform, expanded its use of a TeraWulf-run data center in New York. Around the same time, Google increased its backstop commitment to TeraWulf by $1.4b, taking its total to $3.2b and lifting its equity stake in the miner to 14% from 8%.

TeraWulf, Cipher Raise Capital To Expand Data Center Capacity

Meanwhile, another mining firm, Cipher Mining, has signed a colocation deal with Fluidstack and Google. Under the agreement, Cipher will supply data center capacity. In return, Google will backstop US$1.4 billion in obligations and take an equity stake. In addition, Cipher is expected to seek more debt financing, similar to TeraWulf.

Separately, in August TeraWulf said it plans to raise $400m through a private offering of convertible senior notes due 2031. The company explained that proceeds will partly fund capped call transactions. The rest will go toward expanding its data centers and other corporate needs.

If completed, this financing would be one of the largest debt deals by a crypto miner shifting into AI infrastructure. Furthermore, it shows how Google is expanding its role in building out computing power to meet surging demand from AI developers.