Bitcoin News Today: Google Boosts Stake in TeraWulf to 14% via $3.2B Backstop Expansion

Google has solidified its position as the largest shareholder in TeraWulf, holding a 14% stake after acquiring 32.5 million additional shares through warrants. This increase in ownership came in exchange for expanding its $3.2 billion financial backstop, which supports Fluidstack’s long-term lease obligations at TeraWulf’s Lake Mariner data center. The arrangement grants Google a significant stake in the Bitcoin miner and aligns its financial interest with the development of AI and high-performance computing (HPC) infrastructure [1].

TeraWulf disclosed that the lease agreement with Fluidstack includes a 10-year colocation deal, with potential for expansion. Google’s backstop ensures that Fluidstack can meet its commitments, with the tech giant stepping in should the AI company fail to fulfill its financial obligations. According to TeraWulf’s Chief Strategy Officer, Kerri Langlais, the backstop is tied exclusively to lease revenues from AI and HPC, and does not extend to TeraWulf’s Bitcoin mining operations or corporate debt [3].

The deal reflects a broader strategic shift by TeraWulf to diversify its energy usage and revenue streams. With Bitcoin mining rewards cut by half after the April 2024 halving, the firm has increasingly focused on AI and HPC hosting services. While TeraWulf plans to maintain its current Bitcoin mining operations, it is prioritizing long-term partnerships in the AI sector. Langlais emphasized that transitioning energy capacity to AI and HPC offers greater financial stability and long-term value, particularly with contracts from high-profile partners like Fluidstack and Google [3].

Financially, the company is preparing for further expansion by raising $400 million through convertible bonds. The funding is expected to support the development of data center and mining infrastructure, including the planned 160 MW CB-5 lease at Lake Mariner. Analysts suggest that Google’s involvement may indicate a broader strategic interest in AI and infrastructure, positioning TeraWulf as a key player in the sector [5].

The announcement had an immediate impact on TeraWulf’s stock. Following the news, shares of TeraWulf (WULF) surged by 17% during Monday’s trading session, reaching $10.57. Although the price settled at $9.38 by the close, the stock had gained over 72% in the five days following the initial announcement of the Fluidstack agreement [5]. This strong performance underscores investor confidence in TeraWulf’s evolving business model and its growing partnerships with major tech firms.

The deal also highlights the growing trend of collaboration between technology giants and Bitcoin infrastructure providers. Google’s increased stake and financial backing not only provide a credibility boost for TeraWulf but also reinforce the company’s position in the competitive data center and AI markets. As the firm continues to expand its partnerships and infrastructure, its relationship with Google is expected to play a central role in shaping its future growth.

Source:

[1] Sherwood (https://sherwood.news/crypto/terawulf-jumps-on-googles-14-increased-stake/)

[2] PANews (https://www.panewslab.com/en/articles/dbc9903a-1f00-4550-9c8a-aea4b6aca927)

[3] Barchart.com (https://www.barchart.com/story/news/34218778/terawulf-announces-fluidstack-expansion-with-160-mw-cb-5-lease-at-lake-mariner)

[4] AInvest (https://www.ainvest.com/news/terawulf-strategic-alliances-ai-infrastructure-expansion-high-conviction-play-data-center-sector-2508/)

[5] The Fool (https://www.fool.com/investing/2025/08/18/why-terawulf-stock-soared-today/)

[6] ChainCatcher (https://www.chaincatcher.com/en/article/2198398)