TeraWulf Stock Jumps After Google Boosts Stake to 14% in AI and Bitcoin Mining Deal

Google is now the largest shareholder in TeraWulf after providing a $3.2 billion financial backstop tied to a massive AI infrastructure lease deal.

What Happened?

TeraWulf, a Bitcoin miner and data center operator, has gained major attention after tech giant Google acquired a 14% stake in the company. This move follows Google’s increased financial commitment to support a large-scale AI infrastructure deal between TeraWulf and Fluidstack. The $3.2 billion backstop provided by Google secures lease obligations and gives the tech company warrants for over 73 million shares, making it TeraWulf’s top shareholder.

Google’s Big Bet on AI and TeraWulf

Google’s involvement came as part of a 10-year colocation lease agreement between TeraWulf and Fluidstack, a leading AI infrastructure provider. Under this deal:

• Google committed a $3.2 billion backstop, guaranteeing Fluidstack’s long-term lease at TeraWulf’s Lake Mariner campus.
• In return, Google received warrants for more than 73 million shares, giving it a 14% stake and the position of TeraWulf’s largest shareholder.
• This marks a strategic validation for TeraWulf’s transition from Bitcoin mining to high-performance computing services.

Kerri Langlais, TeraWulf’s chief strategy officer, said the deal represents “a powerful validation from one of the world’s leading technology companies,” highlighting the strength of the firm’s zero-carbon infrastructure.

🚨 In just 4 days, @FluidstackAI & @Google nearly DOUBLED AI/HPC capacity at Lake Mariner to 360 MW 🐺

With lease extensions, that’s up to $16B in potential revenue — and Google now holds a 14% stake in $WULF.

Couldn’t ask for stronger partners validating our vision.

🔗…

— Kerri Langlais (@Kerri_Langlais) August 18, 2025

Lake Mariner Expansion and New Data Center

Fluidstack has exercised its option to expand its lease with a new data center facility named CB-5, which will:

• Provide 160 MW of critical IT load capacity
• Begin operations in the second half of 2026
• Further cement the Lake Mariner site as one of the largest AI-focused data centers in the US

TeraWulf also launched a $400 million debt offering to support the expansion of the data center campus, as demand for AI and cloud infrastructure accelerates.

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Bitcoin Mining Takes a Back Seat

Following the April 2024 Bitcoin halving, which reduced rewards to 3.125 BTC, many miners have looked to diversify their revenue. TeraWulf is no exception.

• The company will maintain but not expand its Bitcoin mining operations
• Instead, it is prioritizing AI and high-performance computing workloads to generate predictable, long-term revenues
• Mining still plays a role in providing cash flow and grid flexibility in the near term

According to a report by VanEck, if public mining firms shift 20% of their energy capacity to AI and HPC by 2027, they could collectively gain $13.9 billion in annual profits over the next 13 years.

Market Reaction: Stock Soars

Investor sentiment responded quickly and positively to the news.

• TeraWulf shares surged to $10.57 intraday, up 17% from the previous close of $8.97
• The stock ended the session at $9.38, and dipped slightly after hours
• Over the past five trading days, the company’s stock has climbed more than 72%

Needham analyst John Todaro raised his price target on TeraWulf from $6 to $11, praising the company’s potential to convert mining infrastructure into AI computing capacity. He did note some concern over share dilution due to Google’s stake and warrant terms.

CoinLaw’s Takeaway

In my experience, when a company gets a major stamp of approval from a heavyweight like Google, it is rarely just about financials. It signals confidence in vision, leadership, and infrastructure. TeraWulf’s shift from pure Bitcoin mining to AI hosting is not only smart, it’s necessary in today’s climate. I found it especially compelling that Google’s $3.2 billion backstop is not corporate debt support, but targeted to AI lease revenues. That’s a strong sign this is about strategic growth, not rescue. If TeraWulf executes well, this could be one of the most important pivots in the crypto infrastructure space in years.