Google secures option for 8% stake in Bitcoin miner TeraWulf via $1.8B backstop deal

Key Takeaways

• Google backs $1.8 billion TeraWulf AI project, gaining warrants for potential 8% stake.
• The deal includes $3.7 billion in contracted revenue and involves over 200 MW of AI-driven infrastructure development.

American Bitcoin miner TeraWulf announced Thursday that it has entered into two 10-year high-performance computing (HPC) colocation agreements with AI cloud platform Fluidstack, backed by Google, which could see the tech giant become a major shareholder.

Under the agreements, TeraWulf will provide more than 200 megawatts (MW) of critical IT load at its Lake Mariner data center campus in Western New York, a facility purpose-built for liquid-cooled AI workloads.

The total contract value could reach $8.7 billion if two five-year extension options are exercised, as noted by the company.

Google will backstop $1.8 billion of Fluidstack’s lease obligations to support project-related debt financing and receive warrants to acquire approximately 41 million shares of TeraWulf common stock, representing an 8% pro forma equity stake.

“This is a defining moment for TeraWulf,” said TeraWulf CEO Paul Prager in a statement. “We are proud to unite world-class capital and compute partners to deliver the next generation of AI infrastructure, powered by low-cost, predominantly zero-carbon energy.”

The first phase of approximately 40 MW is expected to come online in the first half of 2026, with full deployment of over 200 MW planned by year-end 2026. The project’s total cost is estimated at $8-10 million per MW of critical IT load.

“Fluidstack is proud to be a trusted provider of critical compute for the world’s leading AI labs,” said César Maklary, Co-Founder and President of Fluidstack. “Our partnership with TeraWulf reflects our shared commitment to delivering rapid, scalable infrastructure for the AI frontier.”

TeraWulf (WULF) shares surged more than 46% intraday following the new agreements, according to Yahoo Finance data.

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