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 AI project, receiving options for a potential 8% stake.
- The agreement includes a mandatory revenue of US$3.7 billion and envisages the development of AI-powered infrastructure with a total capacity of more than 200 MW.
US bitcoin mining company TeraWulf said on Thursday 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 a significant shareholding for the tech giant.
As part of these 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, which was purpose-built for AI workloads using liquid cooling.
The company says the total contract value could reach $8.7 billion if two five-year extension options are activated.
Google will support Fluidstack's $1.8 billion lease commitment to provide debt financing for the project and will receive options to acquire approximately 41 million shares of TeraWulf, representing 8% of the notional stake.
“This is a pivotal moment for TeraWulf,” said CEO Paul Prager. “We’re proud to bring together the world’s best capital and computing partners to build next-generation AI infrastructure powered by low-cost, 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
