Bitcoin miner-turned-data-center developer TeraWulf increased its committed revolving credit facility 60%, from $250 million to approximately $400 million, under an amendment effective October 23, 2026. Its SEC Form 8-K also removes a restriction on letters of credit—financial guarantees that can be critical when arranging large electricity and transmission connections.

Key Takeaways

• Committed revolving credit increased by approximately $150 million, to $400 million.
• An extra $150 million is uncommitted and depends on new lender commitments.
• The prior $150 million letter-of-credit sublimit was eliminated; the filing does not establish that all available credit has been borrowed.

Why Power Development Requires Financial Guarantees

TeraWulf’s financing agent is Morgan Stanley Senior Funding. The updated agreement also permits release of certain collateral when specified conditions are met. The complete amended agreement is expected with the company’s September-quarter Form 10-Q; borrowing costs and other contractual details cannot be inferred from the short October 23 filing.

The power connection is tangible. TeraWulf’s June-quarter filing reports $360.7 million in letters of credit posted in July for Kentucky Power energy-service and transmission obligations at Muskie. Of that amount, $74 million came through its revolver; $286.7 million used a separate, cash-backed facility. These were posted guarantees, not a reported electricity bill.

Securing those guarantees matters because the company’s October 5 disclosure increased planned contracted power at its eastern Kentucky Muskie campus from 500 MW to 1 GW. The first 500 MW is targeted to ramp in 2028; the second phase is targeted for 2029, subject to approvals and utility construction. Neither phase is already operating at that capacity.

What This Means for Bitcoin Mining

Our previous reporting covered Muskie’s 1 GW power expansion, TeraWulf’s long-term AI lease and the broader finding that secured electrical capacity can outweigh mining equipment in strategic value.

The new development is financing capacity, not another signed gigawatt or guaranteed access to $550 million. It shows why former Bitcoin mining operators must manage utilities, grid infrastructure and collateral alongside chips and buildings as they pursue AI workloads.

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