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TeraWulf Secures $500 Million Morgan Stanley Bridge Loan for Hawesville AI Data Center as Shares Leap 12%

The bridge financing backs TeraWulf’s pivot toward leasing AI/HPC capacity at its Hawesville, Kentucky campus.

Overview

  • TeraWulf entered a 364-day, $500 million delayed-draw senior secured bridge credit agreement administered by Morgan Stanley Senior Funding through subsidiaries Raylan Finance LLC and Raylan Data LLC.
  • Proceeds will fund construction and development of the Hawesville facility, a former industrial site with roughly 250 buildable acres, an energized on-site substation, direct grid connection, and 480 MW of current capacity with phased expansion planned.
  • The loan offers two interest options, either a SOFR-based rate with a 2.75% margin or a base-rate alternative tied to the highest of specified reference rates plus a 1.75% margin.
  • WULF closed up 11.86% at $16.41 following the financing news, with Benzinga also citing a lift from Bitcoin’s brief push above $74,000 and a recent dip in short interest to 93.59 million shares, or about 27.4% of float.
  • The funding underscores a strategic shift from bitcoin mining toward AI/HPC leasing after a Q4 2025 revenue decline to $35.8 million, as institutional ownership stands near 62% and analyst coverage trends positive with multiple Buy ratings.