tl;dr
Terawulf stock rose over 12% after announcing Google's increased investment to $3.2 billion, including a $1.4 billion backstop for project debt financing, and Google's equity stake rising to 14%. Terawulf plans to build a new data center, CB-5, with AI cloud platform Fluidstack, complementing recent...
Terawulf stock (NASDAQ: WULF) surged more than 12% Monday following the Bitcoin miner's announcement of expansion and Google's increased stake in the company. The Easton, Maryland-based firm revealed that Google will provide an incremental $1.4 billion backstop to support project-related debt financing, raising its total investment to $3.2 billion. In return, Google will receive warrants to purchase 32.5 million shares of Terawulf, boosting its pro forma equity stake to 14%, up from the previously announced 8%.
Additionally, Terawulf plans to build a new data center, CB-5, in collaboration with AI cloud platform Fluidstack. This move complements two 10-year computing agreements signed last week with Fluidstack, which will provide over 200 megawatts of capacity at Terawulf's Lake Mariner data center. As of Monday morning Eastern Time, WULF was trading at $10.06 per share and has surged nearly 86% over the past week.
CEO Paul Prager emphasized the strategic importance of the new data center and partnership with Google, stating that the CB-5 project not only increases contracted capacity with Fluidstack but also strengthens alignment with Google as a key financial partner in advancing AI infrastructure. Terawulf’s broader strategy reflects a growing trend among Bitcoin miners exploring the AI sector, an energy-intensive field similar to crypto mining.
When Bitcoin prices decline and mining new coins becomes less profitable, some miners are pivoting towards AI to leverage their existing infrastructure. Firms like BitMine Immersion and Bit Digital have shifted their focus toward developing Ethereum treasuries. However, experts caution that transitioning to AI is not straightforward for Bitcoin miners, as it demands different infrastructure and technological adjustments.