The agreement would be completed by issuing high performance bonds or leverage loans. Google finances with USD 3.2 billion the construction of Terawulf Data Center. Terawulf (Wulf), an American mining company in Bitcoin, is in negotiations to receive around 3,000 million dollars through a financial structure organized by Morgan Stanley bank and backed by Google. The objective is to finance the construction and expansion of data centers In the United States. According to Bloomberg statements by Patrick Fleury, Financial Director of Terawulf, the operation could be completed in October through the Issuance of high performance bonds or leverage loans.
The use of high performance bonds, contemplated in this agreement, is a type of debt that usually offers higher interests to compensate for the greatest credit risk. However, the terms of the transaction They would still be negotiating And there would be no guarantees that the agreement is specified, as explained. At the same time, qualifying agencies analyze that agreement and would be placing it between the categories «BB and CCC», a rated debt range as «garbage bonus,» according to Bloomberg. Credit qualifications such as BB and CCC are scales used by agencies for Measure the risk that a company or government cannot pay its debt. That both are in the «garbage bonus» range, indicates that the investment is risky, although with high returns potential. However, the support of a company such as Google can significantly improve that qualification, since it provides confidence to the market, reduces the perceived risk and facilitates access to financing in better conditions.
Terawulf expands its mining business towards AI
On the other hand, as Cryptonoticias explained, Terawulf had already signed an agreement with the artificial intelligence firm Fluidstack and Google in mid -August. Subsequently, Google promised to expand its guarantee at 1.4 billion dollars to finance the construction of a new data center already changed 32.5 million Wulf shares. With this, Google’s total support amounts to about 3.2 billion dollars and its shareholding proforma to approximately 14 %. Fluidstack, meanwhile, will install your specialized Hardware of AI in that new Terawulf infrastructure without incurring the costs of building and maintaining an own data center. For Wulf this expansion of your business is a getaway to mining volatility, given the fluctuations of the price of Bitcoin (BTC), currently backed the $ 109,000 areawith a weekly 5% drop and a hashprice also descent. Finally, Wulf’s actions after his contractual bond with Google and Fluidstack climbed up. On August 13, a day before signing that pact, Wulf was quoted around $ 5. A day later, Its price reached almost $ 9.
Wulf action chart of the last six months. Source: Google Finance. Currently, Wulf remains up to $ 10.83 per share, according to Google Finance.
