TeraWulf, a prominent Bitcoin mining company, secured a strategic partnership with Google to advance its artificial intelligence infrastructure projects. Under the agreement announced on August 14, Google will backstop $1.8 billion of Fluidstack's lease obligations with TeraWulf, facilitating critical debt financing for the initiative. In exchange, Google received warrants to acquire approximately 41 million shares of TeraWulf common stock, representing an 8% pro forma equity stake.
The deal supports two 10-year high-performance computing colocation contracts between TeraWulf and Fluidstack valued at $3.7 billion initially, with potential to reach $8.7 billion through optional five-year extensions. TeraWulf will provide over 200 MW of IT load capacity from its Lake Mariner data center campus, with 40 MW expected operational by mid-2026 and full deployment by late 2026.
The partnership comes as TeraWulf pivots toward AI hosting amid Bitcoin mining challenges, including a $61.4 million Q1 net loss despite a Q2 return to profitability. Following the announcement, TeraWulf shares (WULF) surged 48% intraday to $8.11 and closed 37% higher at $7.50, quadrupling average trading volume and boosting market capitalization to nearly $3 billion.