TeraWulf Seeks $3.2 Billion of Junk Bonds for NY Data Center (1)

The artificial intelligence debt boom has come to the junk-bond market.

TeraWulf Inc., a crypto-currency mining company, is selling $3.2 billion of bonds to finance a portion of its data center expansion at its Lake Mariner campus in Barker, New York, according to a release Tuesday.

The deal, TeraWulf’s debut in the high-yield bond market, comes as tariffs and high-profile debt collapses, like that of auto parts supplier First Brands Group, pressure credit markets and increase companies’ borrowing costs.

Morgan Stanley is the sole manager on the TeraWulf deal, confirming a Bloomberg News report from last month.

Despite ...