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TeraWulf inventory surged as a lot as 12% to a recent 52-week excessive Monday after Google disclosed it had change into one of many Bitcoin miner’s largest shareholders.
The tech big raised its stake to 14% by upping its backstop dedication in a lease deal between TeraWulf and AI infrastructure supplier Fluidstack.
That information despatched shares hovering intraday earlier than after-hours promoting trimmed positive aspects, and the inventory has eased barely on Tuesday. Even so, TeraWulf stays up greater than 72% up to now week and 87% over the previous month.
TeraWulf share worth (Supply: Google Finance)
TeraWulf Inks Deal With FluidStack
In an Aug. 14 press launch, the Bitcoin miner mentioned it had entered two 10-year high-performance computing (HPC) colocation agreements with the AI cloud platform.
As a part of the preliminary agreements, Terawulf was anticipated to ship greater than 200 MV of vital IT load at its Lake Mariner information heart campus that’s situated in Western New York.
In accordance with that announcement, the power is “purpose-built for liquid-cooled” workloads, making it appropriate for computationally-demanding AI fashions.
The power can also be “engineered to satisfy the dimensions, density and resiliency required for next-generation compute,” TeraWulf added.
The monetary implications of the preliminary agreements have been substantial. TeraWulf estimated that it could be capable of generate round $3.7 billion in contracted income over the preliminary 10-year phrases. Moreover, there have been choices for 2 five-year extensions that may have boosted the overall contract income to roughly $8.7 billion.
Google Steps In To Facilitate The Deal, Ups Its Dedication
Google stepped in to facilitate the lease settlement by backstopping Fluidstack’s lease obligations.
In finance, a backstop is a dedication made by one celebration to supply a secondary supply of funds in a deal or transaction in case the first supply falls brief.
Initially, Google had dedicated to backstopping $1.8 billion of the AI agency’s obligations in trade for warrants to amass roughly 41 million shares of Terawulf frequent inventory. This represents about an 8% fairness stake.
Nonetheless, the tech big not too long ago elevated its backstop dedication to $3.2 billion, in keeping with an Aug. 18 press launch. It has additionally upped its share ask to 73 million TeraWulf shares, pushing its possession stake within the Bitcoin mining firm to 14%. This makes Google certainly one of TeraWulf’s largest shareholders.
Along with Google rising its backstopping dedication and share ask, Fluidstack additionally exercised the choice it obtained within the preliminary agreements for a CB-5 enlargement, rising TeraWulf’s compute obligations by one other 160 MW.
TeraWulf Proclaims Fluidstack Growth with 160 MW CB-5 Lease at Lake Mariner 🐺@fluidstackio has exercised its choice to increase on the Firm’s Lake Mariner information heart campus in Western New York. The enlargement provides CB-5, a brand new purpose-built information heart constructing offering an…
— TeraWulf (@TeraWulfInc) August 18, 2025
“With CB-5, whole contracted vital IT load for Fluidstack on the campus will increase to roughly 360 MW, reinforcing Lake Mariner’s place as one of many largest high-performance computing (HPC) campuses within the US,” Terawulf wrote in yesterday’s press launch.
On account of the current modifications within the deal, the anticipated contract worth has jumped to $6.7 billion as nicely, with the potential to succeed in $16 billion if there are lease extensions.
Mining Companies Pivot To AIH
TeraWulf’s transfer is the most recent in a pattern that has seen Bitcoin miners diversify their revenue streams outdoors of solely mining BTC after the most recent Bitcoin halving in April 2024.
With that halving, mining rewards have been slashed in half, down to three.125 BTC. This undercut Bitcoin miners’ profitability, prompting them to discover various avenues to monetize their computing assets.
Among the many Bitcoin mining corporations that diversified into AI is Hut 8, which launched a GPU-as-a-Service providing in September final 12 months. As a part of this launch, it deployed 1,000 NVIDIA H100 GPUs for an AI cloud developer by its subsidiary, Highrise AI.
In the identical month, Iris Vitality introduced the acquisition of 1,080 NVIDIA H200 GPUs for about $43.9 million to increase its AI Cloud Providers enterprise.
Bitdeer has additionally expanded into HPC/AI providers and began providing NVIDIA-powered cloud options.
Earlier this 12 months, Cipher Mining mentioned in a enterprise replace that it’s now targeted on industrial-scale information facilities for each Bitcoin mining and HPC internet hosting.
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