TeraWulf Expands Revolving Credit Commitments to About $400 Million

Bitcoin (BTC) miner TeraWulf increased commitments under its senior secured revolving credit facility to about $400 million from $250 million, expanding its committed financing capacity under an amendment effective Oct. 23.

The amendment removes the former $150 million letter-of-credit sublimit and allows collateral to be released when specified conditions are met. It also provides an uncommitted option to increase commitments by about $150 million, subject to lender availability and other conditions.

In an Oct. 5 disclosure, TeraWulf said it planned to expand the revolver and pursue additional senior secured debt to support letter-of-credit needs tied to utility partnerships. The disclosure came alongside an increase in the contracted power commitment at its Muskie Data Campus in Kentucky, from 500 megawatts to one gigawatt, part of the Muskie power expansion.

In July, TeraWulf posted $360.7 million in letters of credit for collateral requirements under Muskie’s energy service and transmission agreements. The revolving facility supplied $74 million of that amount. A separate letter-of-credit facility supplied $286.7 million and was backed by $295.3 million in cash collateral. TeraWulf said the transmission agreement will require additional collateral.

TeraWulf plans to file the full amended credit agreement with its quarterly report for the period ended Sept. 30.