TeraWulf shares rise over 5% pre-market as Google increases its stake from approximately 8% to 14%.

TeraWulf shares rise over 5% pre-market as Google increases its stake from approximately 8% to 14%.

TeraWulf Inc. (NASDAQ: WULF) saw its shares rise by over 5% in pre-market trading on July 2, 2025, following the announcement that Google (NASDAQ: GOOGL) has increased its ownership stake in the company. Google's stake in TeraWulf has been expanded from approximately 8% to 14% [3].

The expanded partnership is connected to a new CB-5 lease agreement, under which Google will provide an additional $1.4 billion backstop to support project-related debt financing for TeraWulf’s Lake Mariner data center campus expansion in Western New York [3]. As part of the deal, Google will receive warrants to acquire 32.5 million shares of TeraWulf common stock. This new commitment brings Google’s total backstop support to $3.2 billion.

Despite the announcement of the expanded partnership, TeraWulf shares fell 3% in early New York trading on Monday. The market reaction to the news is indicative of investor sentiment, which may be influenced by various factors including the perceived value of the deal, the company's strategic direction, and broader market conditions.

The partnership reflects broader trends in the tech industry where crypto-native companies are diversifying into the AI sector. Google’s increased stake in TeraWulf underscores its recognition of the value that such infrastructure can bring to AI development, particularly as energy efficiency and scalability become critical concerns [2].

References:
[1] https://www.investors.com/news/google-terawulf-crypto-bitcoin-ai-infrastructure-10-year-deal-googl-stock/
[2] https://www.ainvest.com/news/google-invests-terawulf-cryptocurrency-mining-firm-sees-35-surge-2508/
[3] https://www.investing.com/news/stock-market-news/terawulf-shares-fall-as-google-increases-stake-to-14-93CH-4197463