---
title: "TeraWulf lifts its Morgan Stanley revolver 60% to $400 million and deletes the letter-of-credit cap"
description: "A same-day amendment lifts the Morgan Stanley-led revolver from $250 million to about $400 million and deletes the letter-of-credit cap. The collateral mechanics, not the headline number, are what tell readers who gets paid first."
publisher: "The Inference"
section: "Data Center"
published: 2026-10-23T23:22:16.685Z
modified: 2026-10-23T23:22:16.685Z
canonical: https://theinference.org/article/terawulf-lifts-its-morgan-stanley-revolver-60-to-400-million-and-deletes-the-letter-of-credit-cap
language: en
keywords: "TeraWulf, Data Centers, Financing, Bitcoin Mining, AI Infrastructure"
---

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

> A same-day amendment lifts the Morgan Stanley-led revolver from $250 million to about $400 million and deletes the letter-of-credit cap. The collateral mechanics, not the headline number, are what tell readers who gets paid first.

## A same-day amendment, signed by the CFO

[TeraWulf](https://theinference.org/markets/companies/terawulf), 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](https://www.sec.gov/Archives/edgar/data/1083301/000162828026067100/0001628280-26-067100-index.htm) dated May 7, 2026, with [Morgan Stanley](https://theinference.org/markets/companies/morgan-stanley) 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](https://theinference.org/markets/people/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](https://theinference.org/markets/companies/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](https://www.sec.gov/Archives/edgar/data/1083301/000108330126000166/wulf-20260630.htm): $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](https://theinference.org/article/terawulf-doubles-its-kentucky-power-draw-to-1-gw-with-100-million-in-bill-credits-none-of-it-filed-yet). [2]

*Chart: **TeraWulf has posted $360.7 million of collateral to Kentucky Power, and $320.2 million more can be demanded** Bar chart of collateral TeraWulf has posted to Kentucky Power: a $74 million letter of credit issued under the Morgan Stanley revolver and $286.7 million of cash-backed letters of credit, with up to $320.2 million more the utility can require through Q3 2028*

*Collateral posted to Kentucky Power for up to 1 GW of contracted electric service at the Muskie campus, in millions of dollars. The first two bars are posted as of the June 30, 2026 10-Q; the third is additional collateral the utility can require through the third quarter of 2028, not yet posted. Source: TeraWulf Form 10-Q for the quarter ended June 30, 2026. [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. [1][2]

*Chart: **TeraWulf's committed revolver capacity rose 60% overnight** Bar chart of TeraWulf revolver committed capacity: $250 million at signing in May 2026, $400 million after the October 23, 2026, amendment, $550 million if the uncommitted accordion is fully subscribed*

*Committed amounts under the senior secured revolving credit facility; the third bar is the $150 million uncommitted accordion, shown only if lenders commit. Sources: TeraWulf 8-K, October 23, 2026. [1]*

## 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](https://www.sec.gov/Archives/edgar/data/1083301/000108330126000162/a_wulfearningsreleaseq22026.htm), posted negative $18.3 million of adjusted EBITDA, and spent $855 million on plant and equipment in the quarter [2][3][6]. 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. [2][3][6]

The rent pipeline behind it: Google's [backstop of Fluidstack's Lake Mariner leases, now about $3.2 billion](https://cryptobriefing.com/terawulf-google-backing-lake-mariner/), and a 20-year, 401 MW [Anthropic](https://theinference.org/markets/companies/anthropic) lease at Justified worth about $19 billion. [3][4]

*Chart: **Capex nearly quadrupled in a year while cash held near $3 billion** Line chart of TeraWulf cash and restricted cash versus quarterly capital spending from Q3 2025 to Q2 2026, cash holding near $3 billion while capex climbs to $855 million*

*Cash and restricted cash versus quarterly capital expenditures, in billions of dollars, Q3 2025 through Q2 2026. Source: TeraWulf quarterly figures from its SEC filings, retrieved October 23, 2026. [6]*

## 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](https://247wallst.com/investing/2026/10/21/terawulf-jumps-8-as-ceo-says-power-demand-remains-extremely-strong-applied-digital-surges-9-iren-climbs-6/); 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 [1][2][5]. 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. [1][2][5]

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 [2][5]. Committed bank capacity is already up 60 percent before a dollar of that rent arrives. [2][5]

## Takeaway

The 60% upsizing matters less than the deleted letter-of-credit cap: the revolver was widened to keep collateralizing Kentucky Power service contracts until Fluidstack rent starts, while a single quarter's capex already runs at more than twice the whole facility.

## Sources

1. [SEC EDGAR, TeraWulf Inc. Form 8-K, Amendment No. 1 to Revolving Credit Agreement, filed 23 October 2026](https://www.sec.gov/Archives/edgar/data/1083301/000162828026067100/0001628280-26-067100-index.htm)
2. [TeraWulf Inc. Form 10-Q for the quarter ended 30 June 2026, filed 5 August 2026](https://www.sec.gov/Archives/edgar/data/1083301/000108330126000166/wulf-20260630.htm)
3. [TeraWulf Inc., Q2 2026 earnings release (EX-99.1 to Form 8-K), 5 August 2026](https://www.sec.gov/Archives/edgar/data/1083301/000108330126000162/a_wulfearningsreleaseq22026.htm)
4. [Crypto Briefing, TeraWulf secures Google backing for its Lake Mariner data center campus, 18 October 2026](https://cryptobriefing.com/terawulf-google-backing-lake-mariner/)
5. [24/7 Wall St., TeraWulf Jumps 8% as CEO Says Power Demand Remains Extremely Strong, 21 October 2026](https://247wallst.com/investing/2026/10/21/terawulf-jumps-8-as-ceo-says-power-demand-remains-extremely-strong-applied-digital-surges-9-iren-climbs-6/)
6. [TeraWulf quarterly figures from its SEC filings (cash, capex, revenue, net income, debt), retrieved 23 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001083301)


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TeraWulf lifts its Morgan Stanley revolver 60% to $400 million and deletes the letter-of-credit cap — The Inference. Canonical: https://theinference.org/article/terawulf-lifts-its-morgan-stanley-revolver-60-to-400-million-and-deletes-the-letter-of-credit-cap