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Google has become the largest shareholder in Bitcoin mining company TeraWulf, now holding a 14% equity stake after expanding its financial commitment in a major infrastructure deal with AI firm Fluidstack. The move comes as part of a 10-year colocation lease agreement between TeraWulf and Fluidstack, with Google serving as a financial guarantor through a $3.2 billion backstop, in exchange for warrants for over 73 million shares. Kerri Langlais, TeraWulf’s Chief Strategy Officer, called the investment “powerful validation from one of the world’s leading technology companies,” emphasizing the strength of TeraWulf’s zero-carbon infrastructure and the long-term opportunity in high-performance computing.
The backstop provided by Google is not a corporate debt guarantee for TeraWulf, nor does the company have access to the $3.2 billion. Instead, it strictly supports Fluidstack’s lease obligations at TeraWulf’s Lake Mariner data center in New York, which is set to expand with a new purpose-built AI facility expected to go live in the second half of 2026. Langlais clarified, “The backstop is tied exclusively to contracted AI and high-powered computing lease revenues and is unrelated to our Bitcoin mining operations.”
This strategic pivot highlights a growing trend among crypto miners to diversify revenues. Following the April 2024 Bitcoin halving, which reduced mining rewards to 3.125 BTC, miners are reallocating their energy capacity toward AI and high-performance computing (HPC) services. TeraWulf has joined that movement, with Langlais confirming the company will maintain but not expand its current Bitcoin mining operations. “In the near term, mining generates cash flow and provides a valuable resource to the electrical grid,” she explained. Still, over the longer term, “we see greater value in transitioning those megawatts to AI and HPC workloads.”
The Fluidstack deal is estimated to give 6.7 billion in revenue, and this can potentially grow to 16 billion in revenue with lease extensions. Shares of TeraWulf (WULF) rose notably on the news, hitting a high of $10.57 on Monday during trading, a 17 per cent gain and closing at $9.38. Since it announced a deal, the stock has appreciated by more than 72 percent in the past five days. After blue-chip financial support by Google and the in-place long-term contracts, it seems TeraWulf will be able to change its name once again, having been a pure-play Bitcoin miner, to a major infrastructure player in the age of AI.
