Analysis · Markets · 5 min read
From bitcoin to AI: how former miners are financing the switch
Bitcoin miners own what AI needs most: powered land. Three of them have now financed the switch to AI, in three different ways.
- 01TeraWulf issued US$3.2bn of 7.75% secured notes for Lake Mariner, with Google backstopping Fluidstack's lease.
- 02Cipher issued US$1.733bn of 7.125% secured notes for Barber Lake, with a Google backstop of Fluidstack's obligations.
- 03IREN finances GPUs directly: a Microsoft-backed loan at SOFR + 2.50% and a 9.0% fixed loan for non-IG customers.
A bitcoin mine is a site with a large grid connection, cooling and permits. That is the scarce input for AI compute, and several listed miners have turned their sites into AI campuses. Their financings show two distinct models.
Model one: build the data centre, lease it to a neocloud
TeraWulf and Cipher lease data centre capacity to Fluidstack, and Google stands behind Fluidstack's lease obligations. That backstop turns a lease to a young neocloud into something closer to hyperscaler credit, and it supported two large high-yield bond deals in late 2025.
- TeraWulf's subsidiary WULF Compute issued US$3.2bn of 7.75% senior secured notes due 2030 to fund the Lake Mariner campus in New York. Security includes the borrower's assets, a lockbox account of Fluidstack's tenant entity and, until construction completes, a pledge of Google's warrants in TeraWulf.
- Cipher issued US$1.4bn of 7.125% senior secured notes due 2030 for its Barber Lake campus in Texas, then a US$333m add-on as Fluidstack took more capacity, taking the series to US$1.733bn. Google's backstop of Fluidstack's obligations rose with it.
Three financing models for former miners
| Company | What is financed | Debt | Credit support |
|---|---|---|---|
| TeraWulf | Lake Mariner data centre leased to Fluidstack | US$3.2bn 7.75% senior secured notes due 2030 (Oct 2025) | Google affiliate backstop of Fluidstack lease obligations; pledge of Google's TeraWulf warrants; Fluidstack lockbox |
| Cipher | Barber Lake data centre leased to Fluidstack | US$1.4bn 7.125% senior secured notes due 2030, plus US$333m add-on (Nov 2025) | Google backstop of Fluidstack lease obligations; pledge of Google's Cipher warrants until initial construction completes |
| IREN | GPUs it owns and runs for customers | US$1.545bn DDTL at SOFR + 2.50% plus up to US$2.1bn 5.96% notes; US$2.4bn at 9.0% fixed | Microsoft contract (Hardware 3); limited IREN guarantees |
Model two: own the GPUs
IREN went further and became a GPU cloud itself. Its Hardware 3 financing lends against GPUs serving Microsoft: a US$1.545bn delayed-draw loan at SOFR + 2.50% and up to US$2.1bn of 5.96% notes, rated A by Fitch. Its Mackenzie financing from Blue Owl and Pimco, at 9.0% fixed, funds GPUs in British Columbia for non-investment-grade customers.
The lessons
- Hyperscaler credit support, through backstops or contracts, is what makes these financings work, as it did for lease-backed data centre bonds.
- Building and leasing is a real estate credit with a long life. Owning GPUs is a shorter, operational credit, and is priced and structured differently.
- Warrants and equity stakes held by the backstop provider are now part of some security packages.
Questions for the market
- What does the backstop provider receive in return, and when does its support fall away?
- How do lease-backed bonds and GPU loans share a site when both exist?
- Which other miners have the power and permits to follow, and on what terms?
For in-house counsel
Take it to the documents
The filed wording behind this piece, for the lender’s or the borrower’s side. Previews are open; the full text is free with InfraCompute Weekly.
- Contract libraryGPU contracts, leases, power, equity and JVs, quoted from filed contracts.
- Financing clause libraryCash traps, coverage ratios, cures and step-in, from the filed deals.
- Issues list builderBuild an issues list from the lender’s or the borrower’s side.
- The legal desk for in-house counselEverything for counsel in one place.
Sources
- TeraWulf pricing release: investors.terawulf.com
- TeraWulf 10-Q, Q1 2026: sec.gov
- Cipher add-on pricing release: nasdaq.com
- Cipher 8-K: sec.gov
- IREN Hardware 3: SEC filing: sec.gov
- IREN Mackenzie: SEC filing: sec.gov
