Google Secures 8% Stake in Bitcoin Miner TeraWulf in $3.7B AI Hosting Mega Deal

Key Takeaways:

Google acquires an 8% equity stake in TeraWulf, funding part of a $3.7B AI hosting contract.
TeraWulf to supply over 200 MW of high-performance computing capacity to Fluidstack for 10 years.
Deal marks a major shift for the crypto miner into hyperscale AI infrastructure, boosting growth prospects.

Google has taken an 8% stake in U.S.-based Bitcoin miner TeraWulf Inc. as part of a multi-billion-dollar agreement to expand high-performance computing (HPC) infrastructure for artificial intelligence workloads.

The deal centers on two 10-year co-location agreements with AI cloud platform Fluidstack, under which TeraWulf will deploy over 200 megawatts (MW) of critical IT load at its Lake Mariner data center in Western New York. The contracts are valued at $3.7 billion in guaranteed revenue, with options to extend for an additional decade, potentially raising total revenue to $8.7 billion.

Google’s Capital Injection and Equity Position

Google will contribute $1.8 billion toward supporting project-related debt financing and guaranteeing part of Fluidstack’s lease obligations. In return, the tech giant receives warrants to purchase approximately 41 million shares of TeraWulf common stock, translating to an 8% pro forma ownership stake.

According to TeraWulf CEO Paul Prager, the collaboration “brings together world-class capital and computing expertise to deliver next-generation AI infrastructure powered by low-cost, predominantly zero-carbon energy.” Prager emphasized that the Lake Mariner facility’s strategic design makes it “hyperscale-ready” for the world’s most demanding AI use cases.

From Bitcoin Mining to AI Powerhouse

TeraWulf, originally focused on industrial-scale Bitcoin mining, is increasingly positioning itself as a dual-purpose infrastructure provider, catering to both blockchain operations and AI-driven workloads.

The company’s Chief Technology Officer, Nazar Khan, highlighted the facility’s capabilities: dual 345 kV transmission lines, closed-loop water cooling, and ultra-low-latency fiber connectivity; all engineered for HPC scalability. Khan noted that the long-term partnership with Fluidstack allowed TeraWulf to “custom-design a fully scalable, AI-optimized infrastructure.”

This strategy mirrors the path taken by other miners such as CoreWeave, which successfully pivoted into hyperscale computing for AI and cloud services while maintaining crypto-mining operations.

Industry Analysts Call It a “Transformative Agreement”

Equity research firm Clear Street described the dual agreements as “transformative,” noting that they significantly improve visibility on TeraWulf’s growth and profitability trajectory. The firm maintained its Buy rating on the stock, with a price target of $9, while cautioning that execution and funding milestones remain critical watch points.

Market observers see the deal as further validation of crypto-native infrastructure companies branching into the AI sector – a trend gaining momentum as blockchain data centers seek to diversify revenue streams amid Bitcoin’s price volatility.

Market Reaction and Stock Performance

Following the announcement, TeraWulf shares surged over 35% in early Thursday trading, later extending gains to nearly 59%, reaching their highest levels since December. The stock has now rebounded over 320% from its April lows and is up approximately 54% year-to-date.

Google’s Class A and C shares also edged higher after the news, building on a modest gain from the previous session. The search and cloud computing giant’s stock is up around 7% so far this year.

Execution Timeline

TeraWulf aims to be supplying 40 MW of IT load in the first half of 2026, the rest coming online in the latter part of 2027. The build-out of the company is anticipated to be carried out in staged phases at a cost that follows with customer demand.

Lake Mariner expansion will have Fluidstack, a developer of an AI cloud platform that focuses on hosting large-scale machine learning and inference jobs, as its main tenant. The contracts are based on scaling procedure as the need of AI computing increases.

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