TLDR
- TeraWulf is raising $3B to build AI-focused data centers with Google’s $1.4B support.
- Google’s $3.2B total commitment boosts TeraWulf’s transition to AI infrastructure.
- TeraWulf’s stock surged after news of its $3B funding round and Google’s investment.
- Cipher Mining follows TeraWulf with a similar deal backed by Google for AI infrastructure.
Bitcoin miner TeraWulf is reportedly planning to raise approximately $3 billion to fund the construction of new data centers. The funding, arranged through Morgan Stanley, is supported by a significant commitment from Google, which has agreed to backstop $1.4 billion of the debt. The deal comes amid a surge in demand for data center space, driven by the growing AI industry. This move positions TeraWulf strategically to expand its infrastructure and capitalize on the AI boom.
TeraWulf’s Strategic Pivot to AI Infrastructure
TeraWulf, primarily known for its Bitcoin mining operations, is shifting its focus toward data centers tailored to AI applications. The company plans to use the funds raised to build out infrastructure that supports both cryptocurrency mining and AI workloads.
As part of this transition, TeraWulf has already signed a ten-year colocation agreement with Fluidstack, an AI infrastructure provider. The deal is valued at $3.7 billion in contract revenue and was secured with the support of Google, which also took a 14% stake in TeraWulf.
This new approach aligns TeraWulf’s assets with the growing demand for AI infrastructure. The AI boom has created significant shortages in the availability of data center space and specialized hardware, such as GPU chips.
TeraWulf is well-positioned in this regard, as it already owns critical infrastructure, including secure power capacity and data centers. Google’s involvement strengthens TeraWulf’s ability to meet these demands and solidifies its role in the AI infrastructure space.
Google’s Financial Support and Stake in TeraWulf
Google’s backing of TeraWulf is more than just financial; it also includes a strategic partnership. In addition to the $1.4 billion backstop for TeraWulf’s debt financing, Google has committed $3.2 billion across both of TeraWulf’s major deals. The first of these deals is the Fluidstack partnership, and the second relates to TeraWulf’s funding efforts. This level of commitment demonstrates Google’s confidence in TeraWulf’s ability to deliver on its ambitious plans.
Google’s support also has the potential to improve TeraWulf’s credit rating, as it offers a layer of security that could make the transaction more appealing to investors. With a stake in TeraWulf and backing for its funding, Google is positioning itself as a key player in the transition from cryptocurrency mining to AI infrastructure development.
Market Reaction to TeraWulf’s Stock Performance
Following the announcement of the new funding and partnership with Fluidstack, TeraWulf’s stock saw a notable increase. On the day of the report, TeraWulf’s shares spiked by 12%, reaching an intraday high of $11.72 before closing at $10.97, a 3.7% decrease in after-hours trading. Despite the retreat, TeraWulf’s stock has had an overall positive year, with its share price up by 94% since the start of 2025.
Investors have responded positively to the company’s pivot towards AI, with the Fluidstack deal and Google’s investment further boosting confidence in TeraWulf’s long-term prospects. The company’s solid growth in recent months reflects a growing belief that it can capitalize on both cryptocurrency and AI market opportunities.
Cipher Mining Enters Similar Deal with Fluidstack
TeraWulf is not the only crypto mining company tapping into the AI infrastructure space. Cipher Mining, another major player in the Bitcoin mining sector, has also entered into a partnership with Fluidstack and Google. Under this agreement, Cipher will provide data center capacity for Fluidstack while Google backs the deal with a $1.4 billion commitment and takes a 5.4% equity stake in Cipher.
Like TeraWulf, Cipher Mining is positioning itself to leverage the surge in AI demand by transitioning some of its data center resources to serve AI workloads. This move highlights a broader trend in the industry, where cryptocurrency miners are adapting their business models to capitalize on the growing AI infrastructure market.
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