TeraWulf lands $3.7B AI hosting deal backed by Google

• Bitcoin miner TeraWulf signs a 10-year, $3.7 billion colocation deal with AI infrastructure provider Fluidstack, backed by Alphabet’s Google.
• Google supports $1.8 billion in lease obligations, provides debt financing, and secures warrants for 8% of WULF shares.
• WULF stock surges over 48% intraday on news, pushing market cap near $3 billion.

TeraWulf is the latest Bitcoin mining firm to pivot toward AI infrastructure hosting, announcing a decade-long agreement with Fluidstack, an AI infrastructure provider backed by Alphabet’s Google. The deal, disclosed during the company’s Thursday shareholder call, is valued at $3.7 billion in contract revenue and could double if optional five-year extensions are exercised.

Google’s role includes guaranteeing $1.8 billion of Fluidstack’s lease commitments with TeraWulf and providing debt financing. In exchange, Google obtained warrants for approximately 41 million WULF shares — roughly 8% of the company.

The agreement will boost TeraWulf’s New York data center capacity by over 200 megawatts of IT load.

“Given the expected improvement in our credit profile, we’ve refined our financing strategy to focus on capital markets initiatives, supported by Google’s backing and our updated lease agreements,” said CFO Patrick Fleury.

Founded in 2021 with a focus on environmentally sustainable Bitcoin mining, TeraWulf has navigated challenges in the post-halving environment. The company posted a $61.4 million loss in Q1 but returned to profitability in Q2 with higher revenues.

As volatile BTC prices and rising infrastructure costs pressure miners, many — including TeraWulf — are diversifying into AI and high-performance computing to stabilize revenue streams.

Shares rally on AI pivot

News of the Google-backed deal sent WULF shares soaring 48% intraday to $8.11, with trading volume more than quadruple the daily average, according to Yahoo Finance. The stock closed up 37% at $7.50, lifting its market cap to nearly $3 billion and marking a return to positive territory for the year.

Despite its AI expansion, TeraWulf remains a crypto-linked stock, producing 485 BTC in Q2, down from 699 BTC a year earlier. At quarter-end, the company held $90 million in cash, equivalents, and Bitcoin.