Bitcoin News Today: TeraWulf Signs $3.7B AI Hosting Deal With Fluidstack Backed by Google

Bitcoin miner TeraWulf Inc. has entered into two 10-year, $3.7 billion high-performance computing (HPC) colocation agreements with AI cloud platform Fluidstack, a move that signals a strategic shift from Bitcoin mining to AI infrastructure. Under the agreements, TeraWulf will provide over 200 megawatts of IT load at its Lake Mariner data center in Western New York, with the first 40 MW phase expected to come online in the first half of 2026 [3]. The contracts also include two five-year extension options, which could increase total contract value to $8.7 billion [3].

Tech giant Google has committed to backing $1.8 billion of Fluidstack’s lease obligations, providing critical financial support for project-related debt financing. In exchange, Google has received warrants to purchase approximately 41 million shares of TeraWulf common stock, representing an 8% pro forma ownership stake [3]. This partnership positions TeraWulf as a major player in the AI infrastructure space, leveraging Google’s financial and technological expertise to scale its operations [3].

The Lake Mariner campus, already equipped with dual 345 kV transmission lines, closed-loop water cooling, and ultra-low-latency fiber connectivity, is being positioned as a premier hyperscale-ready facility for AI workloads [3]. TeraWulf CEO Paul Prager emphasized that the agreement represents a “defining moment” for the company, aligning its low-cost, predominantly zero-carbon energy model with the rapidly growing demand for AI computing [3].

The deal reflects a broader trend in the tech industry where crypto-native companies are diversifying into the AI sector. Fluidstack’s co-founder and President César Maklary described the partnership as a shared commitment to delivering scalable infrastructure for the AI frontier [3]. Analysts at equity research firm Clear Street have labeled the agreements as “transformative,” with the firm maintaining a Buy rating on TeraWulf’s stock and a price target of $9 [3].

Market reaction to the news has been strong. TeraWulf’s stock surged over 35% in early trading following the announcement and closed nearly 59% higher. The stock has risen over 320% from its April lows and is up approximately 54% year-to-date [3]. Google’s shares also posted modest gains, continuing a 7% increase on a year-to-date basis [3].

TeraWulf’s ability to secure a partnership with a global AI leader like Fluidstack and secure a stake from Google signals strong investor confidence in its infrastructure capabilities. As the Lake Mariner data center ramps up its AI hosting capacity, TeraWulf is poised to benefit from long-term, stable revenue streams that align with the surging demand for high-performance computing in the AI sector [3].

Source: [1]title1.............................(https://news.bitcoin.com/terawulf-secures-3-7b-ai-hosting-deal-with-fluidstack-backed-by-google/)

[2]title2.............................(https://cointelegraph.com/news/terawulf-google-backed-ai-hosting-deal)

[3]title3.............................(https://www.cryptoninjas.net/news/google-secures-8-stake-in-bitcoin-miner-terawulf-in-3-7b-ai-hosting-mega-deal/)