Google Becomes TeraWulf's Largest Shareholder with 14% Stake

Google Expands Investment in Bitcoin Mining Company TeraWulf

Tech giant Google has increased its stake in TeraWulf to 14%, making it the largest shareholder of the Bitcoin mining company. This significant investment comes through an expanded backstop agreement supporting TeraWulf's partnership with AI infrastructure provider Fluidstack.

$3.2 Billion Backstop Deal Details

TeraWulf announced that Google's financial backstop has grown to $3.2 billion in total value. In exchange, Google receives warrants to purchase over 73 million shares in TeraWulf, representing the 14% ownership stake.

Kerri Langlais, TeraWulf's Chief Strategy Officer, emphasized that Google's investment provides powerful validation from a leading technology company. The deal highlights the strength of TeraWulf's zero-carbon infrastructure and future growth opportunities.

Fluidstack Partnership Expansion

Fluidstack has exercised an option to expand operations at TeraWulf's Lake Mariner data center campus in New York. The expansion includes a new purpose-built data center scheduled to begin operations in the second half of 2026.

The Google backstop specifically supports Fluidstack's long-term lease commitments at Lake Mariner. If Fluidstack cannot meet its financial obligations, Google would provide the $3.2 billion guarantee.

Strategic Shift from Bitcoin Mining to AI Hosting

TeraWulf plans to maintain its current Bitcoin mining operations but will not expand the mining platform at Lake Mariner. The company's focus shifts toward building and delivering AI and high-performance computing services for partners.

This strategic pivot reflects broader industry trends following the April 2024 Bitcoin halving, which reduced mining rewards to 3.125 Bitcoin and impacted overall profitability.

Revenue Projections and Market Impact

The Fluidstack agreement is projected to generate $6.7 billion in revenue for TeraWulf, with potential to reach $16 billion through lease extensions. Industry analysts estimate that Bitcoin mining companies shifting 20% of energy capacity to AI and high-performance computing could increase profits by $13.9 billion over 13 years.

TeraWulf Stock Performance

TeraWulf's stock (WULF) experienced significant volatility following the announcement. Shares rallied to $10.57 during Monday trading, representing a 17% increase, before settling at $9.38 by session end.

Since the initial Fluidstack agreement announcement, TeraWulf's stock price has gained more than 72% over five trading days, demonstrating strong investor confidence in the AI hosting strategy.

Industry Transformation Continues

The Google-TeraWulf partnership represents the ongoing transformation of Bitcoin mining companies toward AI and data center services. With long-term contracted revenues from blue-chip partners, companies like TeraWulf position themselves for sustainable growth beyond traditional cryptocurrency mining operations.

For more Crypto, Web3, Blockchain & AI news visit : www.metamoonmedia.com