TeraWulf Secures $3.7 Billion AI Hosting Deal with Fluidstack Backed by Google

TeraWulf, a former Bitcoin miner, has entered into a transformative $3.7 billion AI hosting agreement with Fluidstack, backed by Alphabet’s Google. The decade-long colocation deal includes two five-year extension options, which could raise the total value to $8.7 billion if fully executed. Google is providing $1.8 billion in guaranteed lease commitments and offering debt financing in exchange for warrants covering approximately 8% of TeraWulf’s outstanding shares, equivalent to 41 million shares [1]. The partnership is part of a broader shift for TeraWulf from cryptocurrency mining to high-performance computing (HPC) infrastructure, leveraging its Lake Mariner data center in New York to provide 200 megawatts of IT load to Fluidstack [2].

The deal has already triggered a strong market response, with TeraWulf’s stock surging over 32% in early trading after the announcement. This follows a 35% increase in the weeks prior as investors began anticipating the company’s strategic realignment [3]. The financial structure of the agreement highlights growing demand for AI infrastructure, with Fluidstack expanding its hosting capabilities to support AI development and deployment [4]. TeraWulf’s CEO emphasized the significance of the partnership in accelerating the delivery of scalable AI infrastructure, a key priority for major technology firms.

In addition to the Fluidstack agreement, TeraWulf has secured long-term ground leases for more data center space in New York, signaling further expansion in the HPC and AI hosting sector [5]. These moves come as the company returns to profitability, with adjusted EBITDA turning positive in the second quarter of 2025. TeraWulf’s dual strategy of continuing Bitcoin mining while transitioning into AI infrastructure has created a more diversified revenue model in a rapidly evolving market.

The AI hosting sector is gaining traction, with major players like Google and its affiliated companies seeking to establish a presence in the HPC space. TeraWulf’s ability to repurpose existing data centers for AI hosting aligns with broader industry trends and showcases the adaptability of infrastructure to support next-generation digital services [6].

Sources:

[1] https://coindoo.com/terawulf-strikes-billion-dollar-ai-hosting-deal-backed-by-google/

[2] https://www.coinlive.com/en/news-flash/871462

[3] https://www.ainvest.com/news/wulf-stock-soars-35-google-acquires-stake-fuels-ai-infrastructure-expansion-2508/

[4] https://sherwood.news/crypto/ethereum-unable-to-breach-usd4-800-though-spot-etfs-on-pace-to-hit-record/

[5] https://www.investing.com/news/company-news/terawulf-q2-2025-slides-rebounds-to-profitability-with-dual-hpc-and-mining-strategy-93CH-4191807

[6] https://www.marketbeat.com/stocks/NASDAQ/WULF/news/