Bitcoin News Today: Bitcoin's Waning Fortune Fuels TeraWulf's $3.2B AI Gamble

TeraWulf Inc. (Nasdaq: WULF) has announced a $3.2 billion private offering of senior secured notes due 2030, signaling an aggressive push to expand its AI data center infrastructure in New York. The offering, led by Morgan Stanley as sole bookrunner, will fund the Lake Mariner campus expansion in Barker, New York, a facility designed for high-performance computing (HPC) and AI workloads . The notes are secured by first-priority liens on WULF Compute LLC's assets and equity stakes, with guarantees from subsidiaries and a pledge of warrants by Google LLC .

The move aligns with a broader industry trend: Bitcoin miners repurposing their energy-intensive infrastructure for AI. As crypto mining profits decline post-halving, firms like TeraWulf are leveraging their expertise in power procurement, cooling systems, and large-scale data center operations to capture a share of the surging AI infrastructure market . Bernstein analysts note that Bitcoin miners control over 14 gigawatts of secured power, offering a faster, cheaper path to AI expansion than traditional greenfield projects .

TeraWulf's pivot is underscored by its recent $3.7 billion, 10-year colocation agreement with Fluidstack, an AI cloud platform. Google is backing $1.8 billion of Fluidstack's lease obligations, in exchange for an 8% equity stake in TeraWulf via warrants to purchase 41 million shares . This partnership, part of a $8–10 million-per-megawatt project, will deploy over 200 MW of critical IT load by late 2026, with potential to scale to $8.7 billion in revenue if five-year extensions are exercised .

The notes offering reflects TeraWulf's strategy to diversify beyond Bitcoin mining, which has faced profitability challenges amid tightening margins and regulatory scrutiny. The company's Lake Mariner campus, already equipped with dual 345 kV transmission lines and closed-loop water cooling, is being tailored for liquid-cooled AI workloads, positioning it as a "hyperscale-ready" facility . Morgan Stanley's role as sole bookrunner highlights investor confidence in the project, though the offering remains subject to market conditions and regulatory approvals .

Industry observers caution that the transition from mining to AI is not without risks. Capital expenditures for GPU upgrades, networking overhauls, and talent reskilling remain significant hurdles. However, TeraWulf's access to zero-carbon energy and existing infrastructure gives it a competitive edge over traditional data center providers struggling with grid constraints .

The company's shares surged 37% following the announcement, reflecting optimism about its AI pivot. With AI demand expected to drive $1 trillion in global data center investments by 2030, TeraWulf's dual focus on Bitcoin mining and AI hosting could position it as a key player in the compute landscape .

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[1] TeraWulf Inc. Announces Proposed Offering of $3.2 Billion of ... (https://investors.terawulf.com/news-events/press-releases/detail/118/terawulf-inc-announces-proposed-offering-of-3-2-billion)

[2] TeraWulf Announces $3.2B Note Offering To Fund Data Center ... (https://stocktwits.com/news-articles/markets/equity/terawulf-announces-3point2-billion-note-offering-to-fund-data-center-buildout/ch6mpUwR3mZ)

[3] TeraWulf Subsidiary To Offer $3.2 Billion In Senior Notes (https://www.nasdaq.com/articles/terawulf-subsidiary-offer-32-billion-senior-notes)

[4] Bitcoin Miners Are Transforming into AI Data Centers ... (https://www.datacenters.com/news/bitcoin-miners-pivot-to-ai-data-centers-a-strategic-shift-in-2025)

[5] Bitcoin Miners Emerge as Key AI Infrastructure Partners Amid ... (https://www.coindesk.com/markets/2025/10/10/bitcoin-miners-emerge-as-key-ai-infrastructure-partners-amid-power-crunch-bernstein)

[9] TeraWulf Signs 200+ MW, 10-Year AI Hosting Agreements with ... (https://investors.terawulf.com/news-events/press-releases/detail/112/terawulf-signs-200-mw-10-year-ai-hosting-agreements-with)

[12] Terawulf's AI Leap: $3.7 Billion Fluidstack Deal ... (https://www.panabee.com/news/terawulf-s-ai-leap-3-7-billion-fluidstack-deal-bolstered-by-google-s-8-equity-stake)