Google Expands Investment in TeraWulf to $3.2 Billion, Boosting Stake to 14%

• Google increased its TeraWulf stake to 14% through a $3.2 billion investment deal. 

• TeraWulf stock surged over 35% after the partnership announcement, reaching 52-week highs. 

• The deal allows TeraWulf to provide 360 megawatts of AI computing capacity at its New York facility.

Google has increased its stake in bitcoin miner and datacenter operator TeraWulf to 14% from 8% through a $3.2 billion investment deal. The technology giant’s expanded commitment comes as demand for artificial intelligence infrastructure surges across the industry.

The partnership centers around TeraWulf’s Lake Mariner Campus in Western New York, where the company will provide over 200 megawatts of high-performance computing capacity. Fluidstack exercised an option for another 160 MW with TeraWulf after signing two 10-year computing deals, effectively doubling the AI hosting capacity to 360 megawatts.

Google’s investment is a backstop guarantee for lease payments tied to TeraWulf’s decade-long agreement with Fluidstack, an AI cloud platform. The deal structure provides Google with warrants to purchase over 73 million WULF shares, positioning the tech giant as one of TeraWulf’s largest potential shareholders.

Source: X, TeraWulfInc

Stock Performance Surges Following Partnership Announcement

TeraWulf shares experienced significant volatility following the news of the Google partnership. The stock surged over 35% in early trading and closed nearly 59% higher, reflecting strong investor confidence in the collaboration’s potential.

The company’s stock reached a 52-week high, trading above $10 per share before settling around current levels. This performance represents a substantial gain over recent weeks, with the stock demonstrating resilience in a competitive Bitcoin mining sector.

Source: Google Finance, WULF Price Chart

Market analysts have responded positively to the development. Northland’s analysis suggests Terawulf’s pro forma enterprise value could reach approximately $8 billion based on $400 million of NOI from partnerships, implying an equity value of roughly $6 billion or $11.42 per share.

Strategic Implications for Bitcoin Mining and AI Infrastructure

The TeraWulf-Google alliance represents a broader convergence trend between cryptocurrency mining operations and artificial intelligence infrastructure providers. Traditional Bitcoin miners are diversifying their revenue streams by leveraging existing data center capabilities for AI workloads.

TeraWulf has simultaneously announced plans to raise $400 million through convertible senior notes due in six years. This funding strategy aims to support the company’s expansion initiatives and capitalize on the growing demand for cryptocurrency mining and AI computing services.

The partnership demonstrates how established technology companies are securing critical infrastructure resources to support their artificial intelligence initiatives. Google’s substantial financial commitment suggests confidence in TeraWulf’s operational capabilities and the long-term viability of dual-purpose data center facilities.

The collaboration positions TeraWulf to compete more effectively with rivals like CleanSpark in the evolving digital infrastructure landscape. Companies with flexible, scalable data center operations may gain significant competitive advantages in multiple market segments as AI computing requirements continue expanding.