Bloomberg: TeraWulf's $3.2 billion bond issuance makes it the first crypto mining company to raise funds in the high-yield market

Foresight News reported, citing Bloomberg, that TeraWulf has become the first cryptocurrency mining company to raise funds in the high-yield market through a $3.2 billion junk bond issuance. This transaction marks the largest junk bond deal led by Morgan Stanley since the famous 1989 leveraged buyout of RJR Nabisco. The deal attracted over $11 billion in orders, thanks to a "backstop" guarantee provided by Google, a subsidiary of Alphabet Inc. This guarantee will take effect once the data center is operational and leased by the UK startup Fluidstack. According to sources, to ease concerns about unfinished infrastructure, about a week before the transaction launched, TeraWulf's senior management hosted nearly 40 potential investors at a site near Buffalo, New York, for more than three hours of Q&A. In addition, creditors will receive a 7.75% yield, significantly higher than the 5.7% average yield for bonds with similar ratings, which also contributed to the success of the deal.

According to sources, cryptocurrency miner Cipher Mining Inc. is the next target and is expected to issue several billions of dollars in junk bonds, which will also be backed by Google. Morgan Stanley is charging substantial fees for its role. The investment bank advised on TeraWulf's convertible bond deal in August and is now working with Cipher to issue similar bonds.