Crypto mining firm TeraWulf is raising approximately $3 billion through Morgan Stanley to expand its data centers, with tech giant Google providing financial support, according to a report from Bloomberg. The funding round, which could launch as early as October in high-yield bond or leveraged loan markets, includes an additional $1.4 billion backstop commitment from Google, bringing Google's total involvement to $3.2 billion across recent deals. This support may enhance the transaction's credit rating, though terms are still under negotiation and no deal is guaranteed.
The expansion builds on TeraWulf's existing partnership with Google, which began in August when Google took a 14% stake in TeraWulf as part of a $3.7 billion, ten-year colocation agreement with AI infrastructure provider Fluidstack. TeraWulf's CFO, Patrick Fleury, emphasized that the AI boom has created shortages in data center space and power, positioning crypto miners advantageously due to their existing infrastructure. Similarly, Cipher Mining announced a parallel deal on Thursday, with Google taking a 5.4% stake and backstopping $1.4 billion of obligations.
TeraWulf's stock (WULF) reacted volatilely, spiking 12% intraday to $11.72 before retreating to close down 3.7% at $10.97 in after-hours trading. Shares had surged 80% after the August announcement and are up 94% year-to-date in 2025. CEO Paul Prager stated, "By adding CB-5, we are not only increasing our contracted capacity with Fluidstack, but also further deepening our strategic alignment with Google as a critical financial partner in delivering the next generation of AI infrastructure." This move underscores a broader trend of crypto miners pivoting to AI, bolstered by institutional confidence.