TeraWulf lifts its Morgan Stanley revolver 60% to $400 million and deletes the letter-of-credit cap

A same-day amendment, signed by the CFO

TeraWulf▼−0.62% — TeraWulf, down 0.62 percent today, a bitcoin miner turned AI data-center landlord, amended its bank revolver tonight and filed the paperwork the same day. Amendment No. 1 to the senior secured revolving credit agreement↗ dated May 7, 2026, with Morgan Stanley▼−2.32% — Morgan Stanley, down 2.32 percent today Senior Funding as administrative and collateral agent, lifts total commitments from $250 million to about $400 million and adds an uncommitted accordion, an option for roughly $150 million more if lenders step up ¹. Chief Financial Officer Patrick Fleury signed the filing. ¹

The smaller print moves more money than the headline. The amendment deletes the $150 million sublimit that capped letters of credit under the old facility and pre-agrees the conditions under which the agent releases collateral. ¹

The real customer is a power company

The original terms explain why that matters. The revolver is secured by substantially all of TeraWulf's assets, prices at the secured overnight financing rate plus 1.75% only until the Fluidstack AI-cloud leases at Lake Mariner commence, and capped total borrowings and letters of credit at $75 million before that date ². Nothing was drawn as of June 30. ²

July's collateral posting nearly exhausted the old cap

In July, to hold up to 1 GW of contracted electric service at its new Muskie campus in eastern Kentucky, TeraWulf posted $360.7 million of letters of credit to Kentucky Power↗: $74 million issued under this revolver, nearly exhausting the pre-lease cap, and $286.7 million backed by $295.3 million of cash locked at 103% ². The utility can require up to $320.2 million more collateral through the third quarter of 2028 ². The Inference covered the power side of that build on October 14. ²

A facility with no letter-of-credit cap and pre-arranged collateral release is built to keep satisfying a utility without stranding more cash. That is the likeliest reading of tonight's paperwork, not a stated one. ¹²

A borrower whose rent has not arrived

The bank group is expanding credit to a company that booked $44.8 million of second-quarter revenue, 71% of it HPC leases↗, posted negative $18.3 million of adjusted EBITDA, and spent $855 million on plant and equipment in the quarter ²³⁶. Cash and restricted cash stood near $3.0 billion against about $5.2 billion of debt and convertible notes, after $1.2 billion of stock issuance in the first half. ²³⁶

The rent pipeline behind it: Google's backstop of Fluidstack's Lake Mariner leases, now about $3.2 billion↗, and a 20-year, 401 MW AnthropicPVT$350B — Anthropic, private, latest valuation $350B lease at Justified worth about $19 billion. ³⁴

What the banks kept, and what to watch

The bear case is arithmetically clean: one quarter's capex more than doubles the entire facility, so this line funds collateral, not construction. Chief Executive Paul Prager pledged no dilution to investors on October 20↗; three days later the lenders, holding a first lien and a springing maturity that can pull the revolver due ahead of the 2030 convertible notes, enlarged the secured stack ¹²⁵. The 8-K is silent on whether the $75 million pre-lease cap survives, and the full amended agreement arrives with the Q3 10-Q due in November. ¹²⁵

The reading that matters next is the first CB-4 rent commencement, expected in the second half of 2026: it starts Fluidstack rent, moves the loan onto its post-commencement pricing grid, and unlocks capacity ²⁵. Committed bank capacity is already up 60 percent before a dollar of that rent arrives. ²⁵