Key Takeaways:
- TeraWulf stock surged 45% in a week, hitting a one-year high as Google raised its stake to 14%.
- Google committed $3.2B in backstop financing tied to Fluidstack’s CB-5 data center expansion.
- TeraWulf pivots beyond Bitcoin mining, channeling energy into AI and HPC hosting for long-term growth.
Bitcoin miner TeraWulf (WULF) hit its one-year record of $10.71 on Monday. The stock jumped exponentially from its previous closing price of $8.97 to $10.71, recording a 19% increase before closing at $9.38.
Since last week, the stock has jumped by 45% mainly due to market catalysts, such as the technological giant Google increasing its stake in the mining firm from 8% to 14% becoming the company’s largest shareholder.
Google’s $3.2B Commitment
TeraWulf announced a major deal between Fluidstack, an AI cloud platform and Google. TeraWulf said in a shareholder call on Thursday that it has signed a 10-year colocation lease arrangement with Fluidstack. Google will provide an incremental backstop worth $1.4 billion for project-related debt financing for Fluidstack’s new CB-5 data center lease at the company’s Lake Mariner campus in New York. The backstop essentially serves as a financial guarantee by Google and in return, they would receive warrants to purchase an additional 32.5 million shares, boosting its total backstop commitment to $3.2 billion and lifting its ownership stake to 14%.
The new CB-5 facility will add 160 MW of critical IT load and become one of the largest high-performance computing (HPC) campuses in the U.S., bringing the total capacity to 360 MW. Operations are scheduled to begin in the second half of 2026.
“Fluidstack’s decision to expand so soon after our initial agreement speaks volumes about the quality, readiness, and scalability of our infrastructure,” said Nazar Khan, CTO of TeraWulf.
The new lease mirrors the economic terms of Fluidstack’s earlier contracts for CB-3 and CB-4. Together, the agreements represent $6.7 billion in contracted revenue, with the potential to scale to $16 billion if lease extensions are exercised according to the official press release.
What Does It Mean for Traders and Investors
According to the CEO of TeraWulf, Paul Prager, “This expansion not only scales our contracted platform but reinforces TeraWulf’s leadership in the AI and HPC infrastructure ecosystem.”
Moreover, Prager also said, “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.”
Even though TeraWulf will continue Bitcoin (BTC) mining at Lake Mariner, post-halving has led to lower BTC block rewards to offset this, miners have started redirecting energy capacity towards AI and HPC hosting. As contracted revenues will ensure long-term financial viability.
The growing crossover between crypto mining and AI infrastructure is increasing at a faster pace. Nonetheless, challenges remain in terms of the current crypto infrastructure, requiring AI-related upgrades and operational shifts. The financial interest of a company like Google provides both credibility and growth visibility for TeraWulf’s long-term strategy.
