WULF Stock Jumps After Google Increases Stake to 14% with $3.2 Billion Backstop, Despite $400 Million Offering

TeraWulf (WULF), a BTC mining and high-performance computing (HPC) hosting company, announced a major expansion at its Lake Mariner data center campus in Western New York, supported by a new round of funding from Google.

The stock jumps following the collaboration, despite the simultaneous announcement of a $400 million convertible notes offering.

The expansion adds CB-5, a new purpose-built data center building providing an additional 160 MW of critical IT load, with operations expected to commence in the second half of 2026. To support the expansion, Google increased its financial backstop by $1.4 billion for project-related debt financing, bringing its total commitment to approximately $3.2 billion.

In addition, Google will receive warrants to acquire 32.5 million shares of TeraWulf, raising its pro forma equity stake to roughly 14%. The CB-5 lease maintains the same economic terms as Fluidstack’s prior agreements for CB-3 and CB-4, ensuring consistency across the campus buildout.

“This expansion underscores the unmatched scale and capabilities of the Lake Mariner campus,” said Paul Prager, Chief Executive Officer of TeraWulf. “By adding CB-5, we are not only increasing our contracted capacity with Fluidstack but also further deepening our strategic alignment with Google as a critical financial partner in delivering the next generation of AI infrastructure.”

The partnership builds on last Thursday’s announced collaboration, in which TeraWulf secured two 10-year agreements with Fluidstack, with Google initially planning to backstop $1.8 billion of lease obligations to support the buildout and project-related debt financing in exchange for an 8% ownership stake. Thanks to that, WULF shares spiked 59% in a single day.

Alongside the expansion, TeraWulf announced a private offering of $400 million aggregate principal amount of convertible senior notes due 2031, with an option for initial purchasers to acquire up to an additional $60 million within 13 days. Net proceeds from the offering are expected to fund capped call transactions and partially finance the Company’s ongoing data center expansion, with the remainder allocated for general corporate purposes. The notes will be senior unsecured obligations, accruing interest semi-annually, with conversion options into cash, shares, or a combination, subject to stockholder approval for additional authorized shares.