TeraWulf Jumps 60% on $3.7 Billion AI Deal and Google Partnership

TeraWulf's stock soared 60% to $8.71 on Thursday, driven by a $3.7 billion AI hosting deal with Fluidstack and a partnership with Google. The 10-year agreements will support 200 megawatts of IT load at its Lake Mariner data center. Alphabet will backstop $1.8 billion of Fluidstack's lease obligations and receive warrants for roughly 8% equity in TeraWulf. The move signals major institutional confidence in the company's long-term trajectory.

TeraWulf Inc.'s stock surged 60% to $8.71 on Thursday, driven by a $3.7 billion AI hosting deal with Fluidstack and a strategic partnership with Google. The 10-year agreements will support over 200 megawatts of IT load at its Lake Mariner data center, positioning TeraWulf as a key player in the AI infrastructure space [1].

The agreements, valued at $3.7 billion with potential to reach $8.7 billion, mark a significant shift for TeraWulf from Bitcoin mining to AI infrastructure. The contracts include two five-year extension options, which could increase the total contract value [2].

Google has committed to backing $1.8 billion of Fluidstack’s lease obligations in exchange for 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].

References:
[1] https://www.ainvest.com/news/bitcoin-news-today-terawulf-signs-3-7b-ai-hosting-deal-fluidstack-backed-google-2508/
[2] https://www.nasdaq.com/articles/stock-market-today-terawulf-jumps-37-billion-ai-deal-and-google-partnership
[3] https://www.cryptoninjas.net/news/google-secures-8-stake-in-bitcoin-miner-terawulf-in-3-7b-ai-hosting-mega-deal/