Google Boosts Stake In TeraWulf To 14%, Shares Hit 1-12 months Excessive

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TeraWulf Inks Deal With FluidStack Google Steps In To Facilitate The Deal, Ups Its Dedication Mining Corporations Pivot To AIH Associated Articles:

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TeraWulf inventory surged as a lot as 12% to a recent 52-week excessive Monday after Google disclosed it had turn out to be one of many Bitcoin miner’s largest shareholders.

The tech large raised its stake to 14% by upping its backstop dedication in a lease deal between TeraWulf and AI infrastructure supplier Fluidstack.

That information despatched shares hovering intraday earlier than after-hours promoting trimmed good points, and the inventory has eased barely on Tuesday. Even so, TeraWulf stays up greater than 72% prior to now week and 87% over the previous month.

Google Boosts Stake In TeraWulf To 14%, Shares Hit 1-12 months Excessive

TeraWulf share value (Supply: Google Finance)

TeraWulf Inks Deal With FluidStack

In an Aug. 14 press launch, the Bitcoin miner mentioned it had entered two 10-year high-performance computing (HPC) colocation agreements with the AI cloud platform.

As a part of the preliminary agreements, Terawulf was anticipated to ship greater than 200 MV of vital IT load at its Lake Mariner information middle campus that’s situated in Western New York.

Based on that announcement, the ability is “purpose-built for liquid-cooled” workloads, making it appropriate for computationally-demanding AI fashions.

The power can also be “engineered to fulfill the size, density and resiliency required for next-generation compute,” TeraWulf added.

The monetary implications of the preliminary agreements have been substantial. TeraWulf estimated that it might be capable of generate round $3.7 billion in contracted income over the preliminary 10-year phrases. Moreover, there have been choices for 2 five-year extensions that might have boosted the overall contract income to roughly $8.7 billion.

Google Steps In To Facilitate The Deal, Ups Its Dedication

Google stepped in to facilitate the lease settlement by backstopping Fluidstack’s lease obligations.

In finance, a backstop is a dedication made by one occasion to supply a secondary supply of funds in a deal or transaction in case the first supply falls brief.

Initially, Google had dedicated to backstopping $1.8 billion of the AI agency’s obligations in change for warrants to accumulate roughly 41 million shares of Terawulf frequent inventory. This represents about an 8% fairness stake.

Nevertheless, the tech large just lately elevated its backstop dedication to $3.2 billion, based on an Aug. 18 press launch. It has additionally upped its share ask to 73 million TeraWulf shares, pushing its possession stake within the Bitcoin mining firm to 14%. This makes Google certainly one of TeraWulf’s largest shareholders.

Along with Google growing its backstopping dedication and share ask, Fluidstack additionally exercised the choice it obtained within the preliminary agreements for a CB-5 growth, growing TeraWulf’s compute obligations by one other 160 MW.

TeraWulf Proclaims Fluidstack Enlargement with 160 MW CB-5 Lease at Lake Mariner 🐺@fluidstackio has exercised its choice to develop on the Firm’s Lake Mariner information middle campus in Western New York. The growth provides CB-5, a brand new purpose-built information middle constructing offering an…
— TeraWulf (@TeraWulfInc) August 18, 2025

“With CB-5, whole contracted vital IT load for Fluidstack on the campus will increase to roughly 360 MW, reinforcing Lake Mariner’s place as one of many largest high-performance computing (HPC) campuses within the US,” Terawulf wrote in yesterday’s press launch.

On account of the current adjustments within the deal, the anticipated contract worth has jumped to $6.7 billion as effectively, with the potential to succeed in $16 billion if there are lease extensions.

Mining Corporations Pivot To AIH

TeraWulf’s transfer is the newest in a development that has seen Bitcoin miners diversify their revenue streams outdoors of solely mining BTC after the newest Bitcoin halving in April 2024.

With that halving, mining rewards have been slashed in half, down to three.125 BTC. This undercut Bitcoin miners’ profitability, prompting them to discover various avenues to monetize their computing sources.

Among the many Bitcoin mining corporations that diversified into AI is Hut 8, which launched a GPU-as-a-Service providing in September final yr. As a part of this launch, it deployed 1,000 NVIDIA H100 GPUs for an AI cloud developer by way of its subsidiary, Highrise AI.

In the identical month, Iris Vitality introduced the acquisition of 1,080 NVIDIA H200 GPUs for about $43.9 million to develop its AI Cloud Providers enterprise.

Bitdeer has additionally expanded into HPC/AI providers and began providing NVIDIA-powered cloud options.

Earlier this yr, Cipher Mining mentioned in a enterprise replace that it’s now centered on industrial-scale information facilities for each Bitcoin mining and HPC internet hosting.