Google acquires option for 8% stake in Bitcoin miner TeraWulf in $1.8 billion deal

Key findings

• Google is backing the $1.8 billion TeraWulf artificial intelligence project, receiving options for a possible 8% stake.
• The deal includes agreed proceeds of US$3.7 billion and involves the development of AI-powered infrastructure with a total capacity of over 200 MW.

US bitcoin mining company TeraWulf announced on Thursday that it has signed two 10-year contracts to host high-performance computing (HPC) facilities with Google-backed cloud AI platform Fluidstack, which could lead to the tech giant becoming a significant shareholder.

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

The company said the total contract value could reach US$8.7 billion if two five-year extension options are exercised.

Google will support Fluidstack's $1.8 billion lease obligations to facilitate the debt financing of the project and will receive options to purchase approximately 41 million shares of TeraWulf common stock, representing 8% of the conditional equity stake.

“This is a pivotal moment for TeraWulf,” said TeraWulf CEO Paul Prager. “We are proud to bring together the world’s leading capital and computing partners to build next-generation AI infrastructure powered by affordable, largely carbon-free energy.”

The first phase of approximately 40 MW is expected to be operational in the first half of 2026, with full deployment of over 200 MW planned for late 2026. The total project cost is estimated at US$8-10 million per MW of critical IT load.

“Fluidstack is proud to be a trusted provider of mission-critical computing resources to the world’s leading AI labs,” said Cesar Maclary, co-founder and president of Fluidstack. “Our collaboration with TeraWulf reflects our shared commitment to building fast, scalable infrastructure for cutting-edge AI research.”

Shares of TeraWulf (WULF) rose more than 46% in a day after the new agreements were signed, according to Yahoo Finance data.

Source: cryptonews.net