Google backs TeraWulf’s $3.7B AI project

Bitcoin miner TeraWulf signs a $3.7B, 10-year AI hosting agreement with Fluidstack backed by Google. The deal adds 200 MW of data center capacity in New York.

From Bitcoin Mining to AI Hosting Solutions

TeraWulf, a Bitcoin mining company focused on sustainable operations, has announced a major move into AI infrastructure hosting. The firm signed a decade-long colocation lease deal with AI provider Fluidstack, backed by Alphabet’s Google, worth $3.7 billion. If extended, the contract value could surpass $7 billion.

Google will support Fluidstack’s $1.8 billion lease commitments to TeraWulf and provide debt financing. In exchange, it secured warrants for roughly 41 million WULF shares, representing around 8% of the company.

Expanding Data Centers and Boosting Profits

The agreement will expand TeraWulf’s New York data center capacity by more than 200 megawatts of IT load. CFO Patrick Fleury said the deal strengthens the firm’s credit profile and allows a shift toward new capital markets initiatives.

Founded in 2021, TeraWulf initially specialized in environmentally friendly Bitcoin mining. However, rising electricity costs and declining post-halving profits have pushed the company to diversify into AI and high-performance computing.

Stock Market Reaction to Google Partnership

The announcement triggered a sharp rally in WULF stock, with prices jumping 48% intraday to $8.11 and trading volumes surging to over four times the daily average. The market capitalization hit nearly $3 billion, putting the stock back in positive territory for the year.

Despite the pivot, TeraWulf remains active in Bitcoin mining, producing 485 BTC in Q2 compared to 699 BTC a year earlier. At quarter’s end, the company held $90 million in cash, equivalents, and Bitcoin.