TeraWulf (WULF) shares rocketed 35% during early trading on Thursday after it was revealed Google (GOOGL) is taking an 8% stake in the company. Traditionally a cryptocurrency mining company, TeraWulf is pivoting to also provide infrastructure to hyperscale customers for high-performance computing and artificial intelligence workloads. This is similar to CoreWeave (CRWV) shifting its focus from a crypto miner to a hyperscaler.
Terawulf signed two 10-year agreements with Fluidstack to provide HPC clusters for large cloud providers. Under the agreements, TeraWulf will deliver more than 200 MW of critical IT load at its Lake Mariner data center campus in Western New York. The agreements total $3.7B in contracted revenue and two five-year extension options that would boost the contract revenue to $8.7B, the company said. Google has agreed to help fund the buildout, providing $1.8B to support project-related debt financing. Google will receive warrants to acquire approximately 41M shares of TeraWulf common stock, equating to an 8% pro forma equity ownership stake.
“We are proud to unite world-class capital and compute partners to deliver the next generation of AI infrastructure, powered by low-cost, predominantly zero-carbon energy,” said TeraWulf CEO Paul Prager. “This transaction underscores Lake Mariner’s status as a premier hyperscale-ready campus and further accelerates our strategic expansion into high-performance compute.”
“With dual 345 kV transmission lines, closed-loop water cooling, and ultra-low-latency fiber connectivity, this campus is purpose-built for today’s most demanding AI workloads,” said TeraWulf Chief Technology Officer Nazar Khan. “Our close collaboration with Fluidstack allowed us to design a fully customized, scalable solution.”
