Bitcoin News Today: TeraWulf secures $3.7B AI hosting deal with Fluidstack backed by Google equity stake

TeraWulf, a U.S.-based Bitcoin miner and data center operator, has secured a landmark $3.7 billion AI hosting deal with Fluidstack, a key player in the high-performance computing (HPC) space. The agreement, spanning over 200 MW of computing capacity at TeraWulf’s Lake Mariner data center campus, marks a significant strategic shift for the company as it expands beyond Bitcoin mining into the AI infrastructure sector [1]. The contract includes a 10-year lease with two optional five-year extensions, potentially raising the total value to $8.7 billion.

Google has taken a prominent role in the deal by backing $1.8 billion of Fluidstack’s lease obligations, effectively providing financial support to facilitate the project. In return, Google will receive warrants for approximately 41 million shares of TeraWulf common stock, giving it an 8% equity stake in the company [1]. This arrangement aligns TeraWulf with one of the world’s leading AI firms, potentially unlocking new growth opportunities and technical synergies.

The Lake Mariner facility is being developed as a hyperscale-ready data center, designed to support liquid-cooled AI workloads and high-density computing. Phase one of the project, involving about 40 MW of capacity, is scheduled to go live in the first half of 2026, with the full 200 MW deployment expected by the end of the same year. The infrastructure is equipped with closed-loop water cooling and ultra-low-latency fiber connectivity, as highlighted by TeraWulf’s leadership [1].

TeraWulf projects an 85% net operating income margin from the contract, which would generate roughly $315 million annually in revenue. The company has also secured 30-day exclusivity for an additional 160 MW at the CB-5 site, further expanding its potential capacity. The lease structure includes annual escalators, ensuring steady revenue growth over the long term.

The deal underscores a broader trend among Bitcoin miners who are repurposing their infrastructure to meet the surging demand for AI and cloud computing. By leveraging its existing data center expertise, TeraWulf is repositioning itself as a provider of mission-critical HPC services. The company aims to diversify its revenue streams and reduce its exposure to Bitcoin price volatility, a key challenge in the crypto mining industry.

TeraWulf’s CEO emphasized the significance of the partnership, stating that the company is uniting “world-class capital and compute partners” to deliver next-generation AI infrastructure. The Lake Mariner campus is now positioned as a key hub for AI workloads, with Fluidstack expanding its high-performance computing offerings through this collaboration.

The project’s total cost is estimated at $8 million to $10 million per MW of critical IT load. Morgan Stanley is serving as TeraWulf’s sole financial advisor, while legal counsel is being provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stutzman, Bromberg, Esserman & Plifka, P.C. The company plans to access the capital markets to fund a portion of the deployment.

TeraWulf’s stock price saw a 43% increase following the announcement, reflecting investor optimism about the deal and the company’s strategic pivot [2]. The involvement of Google in the transaction has further bolstered market confidence, signaling the growing intersection between AI infrastructure and energy-efficient computing.

This development sets a precedent for other Bitcoin mining firms seeking to diversify into the AI sector. As AI demand continues to outpace supply, companies with scalable infrastructure and expertise in power and cooling are well positioned to capture a growing share of the market [2].

Source:

[1] title1: Bitcoin Miner TeraWulf Lands $3.7B AI Hosting Win (https://www.livebitcoinnews.com/bitcoin-miner-terawulf-lands-3-7b-ai-hosting-win-with-google-at-the-table/)

[2] title2: WULF News Today | Why did TeraWulf stock go up today? (https://www.marketbeat.com/stocks/NASDAQ/WULF/news/)