Mining company TeraWulf receives support from Google and plans to raise $3 billion to expand its data center.

US mining company TeraWulf plans to raise about $3 billion to expand its data centers. In support of this, Google is stepping in, not only willing to provide up to $3.2 billion in financing guarantees but also increasing its stake in TeraWulf from 8% to 14%. This is to support the large-scale financing. The AI boom has driven a surge in demand for data centers, making companies that originally started with Mining become new partners for tech giants.

TeraWulf is favored by AI operators, with Morgan Stanley providing assistance simultaneously.

In August of this year, the UK AI cloud platform Fluidstack announced that it would expand its use of TeraWulf's data center located in New York, indicating that TeraWulf is gradually transforming from a traditional cryptocurrency mining company into an important supplier for AI computing demands.

In the same month, Morgan Stanley ( also assisted TeraWulf in completing a $850 million convertible bond deal, laying the foundation for larger-scale financing to come.

Cipher Mining has reached a cooperation agreement with Fluidstack and Google.

Another US-listed mining company, Cipher Mining )CIFR(, also announced on 9/26 that it has reached a cooperation agreement with Fluidstack and Google. Cipher stated that it has signed a 10-year high-performance computing )HPC( hosting contract with Fluidstack to provide data center capacity.

Under this agreement, Google will acquire equity in Cipher and provide a financing guarantee of $1.4 billion for Fluidstack. Reports indicate that Cipher also plans to raise some funds for the project through debt. Morgan Stanley will similarly serve as a financial advisor and is expected to lead the related debt financing.

At the same time, Morgan Stanley has recently completed an $800 million convertible bond deal for Cipher.

TeraWulf plans to raise $3 billion in financing, with full support from Google.

Next, TeraWulf's CFO Patrick Fleury revealed that the company plans to launch a $3 billion financing program as early as October, managed by Morgan Stanley. This transaction may take the form of "corporate bonds" or "leveraged loans," and is currently still in the negotiation stage.

Credit rating agencies are assessing the credit rating of this case, which may fall between BB and CCC, classifying it as junk bonds. However, since Google is expected to provide financing guarantees of up to $3.2 billion, the market anticipates this will help pump up the rating.

Regarding this financing plan, Google has only stated that it will not comment further beyond the existing public information, and Morgan Stanley has also declined to respond to details.

The AI boom drives mining companies to transform and expand their data center layout.

This wave of layout is driven by the AI fever. As the development of AI requires a large amount of computing power, GPUs, stable electricity, and large data centers have become sought-after resources, making data centers increasingly scarce. Therefore, many AI companies are directly collaborating with mining companies that have advantages in electricity and data centers, with TeraWulf and Cipher being typical representatives.

At the same time, Google is also seizing this trend by not only increasing its stake in TeraWulf but also providing financing guarantees, which consolidates its layout in AI data centers and promotes a closer integration between traditional mining companies and the cloud AI industry chain.

This article states that the mining company TeraWulf has received support from Google and plans to raise $3 billion to expand its data center, first appearing on Chain News ABMedia.