Bitcoin News Today: Google Boosts TeraWulf Stake to 14% Via $3.2 Billion AI Infrastructure Pact

Google has solidified its position as the largest shareholder in TeraWulf, a U.S.-based Bitcoin mining and data center operator, securing a 14% stake through a $3.2 billion financial backstop agreement. The deal supports a 10-year colocation lease between TeraWulf and Fluidstack, an AI infrastructure provider, marking a strategic pivot for the company from cryptocurrency mining toward high-performance computing (HPC) and AI services [1]. Under the agreement, Google’s increased investment is tied to a financial guarantee that covers Fluidstack’s obligations, reinforcing the stability of the long-term lease [4]. The arrangement includes warrants for over 73 million TeraWulf shares, which could further amplify Google’s ownership stake [1].

TeraWulf’s Lake Mariner data center in New York, which is powered by zero-carbon energy and equipped with ultra-low-latency fiber and closed-loop cooling systems, is central to this transition. The facility is already hosting over 360 MW of IT load and will expand with a new 160 MW facility, CB-5, expected to start operations in late 2026 [1]. This infrastructure is purpose-built for AI and HPC workloads, attracting partners like Fluidstack, whose platform serves clients such as Mistral AI. The 10-year lease includes over 200 MW of critical IT load, with revenue projections reaching up to $16 billion if extended [1].

The deal reflects a broader industry trend where Bitcoin miners are repurposing their infrastructure for AI and HPC. A 2024 VanEck report estimates that redirecting 20% of Bitcoin miners’ energy to AI by 2027 could generate $13.9 billion in additional annual profits over 13 years [1]. TeraWulf’s approach—maintaining Bitcoin mining cash flows while scaling AI infrastructure—aligns with this forecast. The company’s CEO, Paul Prager, emphasized that the partnership “unites world-class capital and compute partners” to deliver next-generation AI infrastructure [1].

TeraWulf’s stock (WULF) has responded positively, surging over 72% since the Fluidstack deal was first disclosed on August 14. On August 18, shares closed at $9.38 after an intraday high of $10.57, reflecting strong investor confidence in the company’s strategic direction [1]. Fluidstack’s co-founder, César Maklary, noted that the partnership is a shared commitment to scalable AI solutions, with further capacity expansions already under discussion [1].

The transition from Bitcoin mining to AI services is not without challenges. TeraWulf’s profitability has been affected by the April 2024 Bitcoin halving, which reduced mining rewards. However, the company’s pivot is seen as a response to both economic and environmental pressures. Kerri Langlais, TeraWulf’s Chief Strategy Officer, described Google’s investment as a “powerful validation” of the company’s zero-carbon infrastructure and its scalability in the AI sector [1].

Analysts suggest that the deal could set a precedent for other Bitcoin miners seeking to adapt to market changes. By aligning with Google, TeraWulf gains access to significant capital and strategic partnerships that could strengthen its competitive position in the AI infrastructure market [5]. However, the long-term success will depend on TeraWulf’s ability to scale its AI services effectively and manage the operational complexities of transitioning from a mining-centric to a computing-centric business model [6].

The timing of the announcement, just weeks after several similar investments in the sector, suggests that the market is increasingly viewing AI infrastructure as a more sustainable and scalable asset than Bitcoin mining. With Google now holding the largest stake in TeraWulf, the company is well-positioned to influence TeraWulf’s strategic decisions and growth trajectory in the years ahead [7].

Source:

[1] https://coinmarketcap.com/community/articles/68a46d14b1c6d25ff1efd267/

[2] https://www.ccn.com/news/crypto/google-terawulf-bitcoin-miner/

[3] https://www.cointribune.com/en/google-invests-in-bitcoin-mining-by-becoming-the-main-shareholder-of-terawulf/

[4] https://coincentral.com/google-bets-big-on-bitcoin-miner-terawulf-with-3-2-billion-ai-infrastructure-deal/

[5] https://www.tradingview.com/news/cointelegraph:745d5b0de094b:0-google-increases-terawulf-stake-to-14-becoming-largest-shareholder/

[6] https://coindoo.com/google-becomes-largest-shareholder-in-bitcoin-miner-terawulf/

[7] https://www.fxleaders.com/news/2025/08/19/google-becomes-terawulfs-largest-shareholder-with-14-stake-in-strategic-ai-infrastructure-deal/