TeraWulf Inc.’s stock rose 72% in five days after Google took a 14% stake in the Bitcoin miner.
The deal is tied to a $3.2 Billion lease-backstop for a new AI data center at TeraWulf’s Lake Mariner campus in New York.
This deal has invariably exposed Google to the Bitcoin world as the tech giant also benefits from AI advancement.
Google Deal Pushes Terawulf Shares Higher
Terawulf’s shares gained 72% within five days after news that Google had become its largest shareholder. According to the company, Google now holds a 14% stake.
This follows an increase in its financial backstop for a lease deal with Fluidstack, an artificial intelligence infrastructure provider.
The deal involved Terawulf’s Lake Mariner data center campus in New York. Google agreed to guarantee $3.2 Billion in lease obligations on behalf of Fluidstack.
In return, it received warrants to buy more than 73 million shares of Terawulf. This equity positioned Google as the biggest investor in the Bitcoin miner.
Kerri Langlais, Terawulf’s chief strategy officer, explained that the arrangement provided stability for the lease agreement with Fluidstack.
As disclosed, if Fluidstack could not meet its commitments, Google would cover them.
However, Langlais said the guarantee was not tied to Terawulf’s corporate debt or directly to its Bitcoin mining operations.
Notably, the agreement also included an expansion option. Fluidstack exercised this option to add a new purpose-built data center at the Lake Mariner site.
The new facility is expected to begin operations in the second half of 2026.
Bitcoin and AI Strategy to Shape Future Revenue
While Terawulf said it would maintain its Bitcoin mining operations, it made clear that its growth plans were shifting.
The company stated that it saw more value in moving energy capacity to artificial intelligence and high-performance computing services over the medium to long term.
Langlais noted that mining would still generate short-term cash flow.
She added that it also played a role in balancing the electrical grid by adjusting energy loads when required.
Still, the company pointed to stronger opportunities in long-term hosting agreements with firms like Google and Fluidstack.
Industry analysts have also noted the trend of Bitcoin miners diversifying into AI and hosting.
A recent report by asset manager VanEck estimated that if listed mining firms shifted 20% of their energy toward AI by 2027, they could generate up to $13.9 Billion in extra profits over 13 years.
Terawulf projected that its current agreement with Fluidstack could produce $6.7 Billion in revenue, with the possibility of reaching $16 Billion if lease extensions were added.
The facilities would be powered mainly by low-cost, zero-carbon energy, a feature the company said made them suitable for power-intensive AI operations.
Wider Interest in Crypto-Linked Firms
It is worth noting that the Terawulf news shows a wider pattern of mainstream firms backing cryptocurrency-related firms.
Google’s role as the largest shareholder marked one of the most significant links between a global technology firm and a Bitcoin miner.
More importantly, other digital asset firms have also attracted attention from major investors.
Circle, the company behind the USDC stablecoin, has received support from large investment firms including Ark Invest.
These moves show growing interest from established players in firms connected to both digital assets and the infrastructure that supports them.
Following the Google announcement, Terawulf’s stock rallied during Monday’s trading session to $10.57 before closing at $9.38.
The company also revealed plans to issue $400 Million in convertible senior notes due in 2031.
In addition, proceeds from the notes would help fund the Lake Mariner expansion and cover other corporate needs.
Chief executive Paul Prager said the expansion highlighted the scale of the Lake Mariner site and strengthened the company’s relationship with Google.
Terawulf stated that it aimed to balance its existing mining platform with long-term hosting contracts that could provide steadier growth.
