- Google raised its backstop funding to Terawulf to $3.2 billion.
- The American multinational corporation increased its stake following the Bitcoin (BTC) miner’s expanded agreement with Fluidstack.
Alphabet Inc., through Google, has significantly increased its stake in Terawulf. The two companies are set to benefit from the investment, with Google potentially gaining financially from the appreciation of Terawulf’s value. At the same time, the latter increases its Bitcoin mining and AI support capabilities.
Google’s $3.2 Billion Investment in Terawulf
MarketWatch first caught wind of Google and Terawulf’s agreement last week. Initially, the stock acquisition was for an 8% share. However, the numbers eventually grew to 14% on Monday, which sent the latter’s stocks, WULF, rallying by over 12% following the news before an eventual retracement at market close.
According to a press release on Monday, Google injected $3.2 billion into Terawulf, including the earlier arrangement. This came after the Bitcoin miner offered a debt financing involving 73 million shares to bootstrap its expansion, starting on its data center campus in western New York.
Why Google Increased Its Stake in Terawulf
Terawulf unveiled Google’s initial investment of $1.8 billion for 41 million shares of project-related debt during a second-quarter earnings call. Fast-forward to Monday, Google upped its support with another $1.4 billion backstop funding for an additional 32.5 million shares.
Google raised its stake as Terawulf and Fluidstack, an AI cloud provider, expanded their agreement. The amended deal between Terawulf and Fluidstack involves two 10-year contracts for the former to deliver more than 200 megawatts of AI-optimized data center capacity to the latter at Lake Mariner. Then, the new CB-5 facility, bankrolled by Google, adds an extra 160 MW load to Fluidstack.
Overall, Fluidstack will gain around 360 MW IT (information technology) load from its lease extension. The parties expect the CB-5 data center to be operational by the second half of 2026.
“Like the prior buildings, CB-5 will be purpose-built for high-density, liquid-cooled workloads, leveraging Lake Mariner’s dual 345 kV transmission lines, sustainable water cooling, and ultra-low-latency connectivity,” stated Nazar Khan, Chief Technology Officer of TeraWulf. “And with the scale, resources, and infrastructure we have in place, there is significant potential for even further expansion with Fluidstack as their compute requirements continue to grow.”
Paul Prager, CEO Officer of TeraWulf, highlighted that the expansion of their Lake Mariner campus underscores the center’s “unmatched scale and capabilities.” He considers hitting two birds in one stone with the latest developments, as they advanced their contracted capacity with Fluidstack while forging a strong strategic alignment with Google.
Furthermore, Prager emphasized that Google’s stake is a vote of confidence in Terawulf’s strong position in the AI and HPC (high-performance computing) infrastructure ecosystem.
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