Google Increases Stake in TeraWulf to 14%

Google has boosted its stake in TeraWulf to 14%. Alphabet Inc., Google's parent company, operates a web-based search engine, YouTube, Gmail, Nest Labs, Calico, Google X, Google Ventures, and Google Fiber. Net sales are distributed geographically across the US, Americas, Europe/Middle East/Africa, and Asia/Pacific.

Alphabet Inc., the parent company of Google, has significantly increased its stake in TeraWulf, a leading high-performance computing (HPC) hosting and Bitcoin mining company. The move comes as part of a broader expansion strategy for TeraWulf, which is set to deliver more than 200 megawatts of critical IT load to Fluidstack, an AI cloud platform, at its Lake Mariner datacenter in New York.

The strategic partnership, which includes two five-year extension options, is a significant milestone for TeraWulf. The company estimates annual revenue of $370 million from this deal. Additionally, Google is backing $3.2 billion in funding for the expansion, which includes the construction of a new data center, CB-5, that will add 160 MW of critical IT load. This expansion is expected to begin operations in the second half of 2026 [2].

Google's increased stake in TeraWulf, now at 14%, reflects a growing interest in the company's capabilities in HPC and its potential to host AI workloads. The deal also includes a $400 million convertible note offering, which was announced simultaneously with the expansion announcement. Despite this offering, TeraWulf's stock surged by 59% following the announcement, highlighting investor confidence in the company's future prospects [2].

This expansion is part of a broader trend in the Bitcoin mining sector, where companies are diversifying their income streams away from volatile crypto-linked revenues. Similar deals have been signed by Core Scientific with CoreWeave and Bit Digital with the Royal Bank of Canada, showcasing the growing demand for HPC infrastructure in the AI sector [1].

Google's involvement in TeraWulf's expansion is notable for its strategic backing and financial certainty. The company's move to host AI workloads demonstrates how a large miner can turn its energy infrastructure into stable, long-term revenue. This deal could inspire similar moves from peers in the industry [1].

Despite Google's recent antitrust issues in Australia, the company's strong financial performance and growth in AI and cloud segments continue to provide a compelling case for investment. Alphabet Inc. reported a 14% year-over-year revenue increase in the second quarter of 2025, with its cloud business experiencing notable growth [3].

In conclusion, Google's increased stake in TeraWulf is a strategic move that aligns with the company's broader expansion plans. The deal reflects growing demand for HPC infrastructure in the AI sector and underscores TeraWulf's potential to generate stable, long-term revenue. Investors should closely monitor the evolving competitive landscape and potential valuation risks.

References:
[1] https://blockworks.co/news/google-terawulf-hosting-deal
[2] https://www.fxleaders.com/news/2025/08/18/terawulf-googles-stake-in-wulf-fuels-bitcoin-mining-stock-rally/
[3] https://www.ainvest.com/news/alphabet-google-fined-55m-australia-anti-competitive-practices-2508/