TeraWulf’s shares surged as much as 59% in intraday trading after the company announced a landmark agreement signaling its transition from Bitcoin mining to becoming a major AI infrastructure provider.
Deal Highlights
- 10-Year AI Hosting Agreement
TeraWulf signed two decade-long contracts with AI cloud platform Fluidstack to deliver more than 200 megawatts of computing capacity from its Lake Mariner data center in New York. The agreements guarantee $3.7 billion in revenue, with potential expansions increasing the total to $8.7 billion. - Google’s Strategic Backing
Google is supporting $1.8 billion of Fluidstack’s lease commitments, helping secure financing for the project. In return, Google will receive warrants for around 41 million TeraWulf shares, representing an 8% ownership stake. - Deployment Timeline
The first 40 megawatts are expected to be operational in early 2026, with full capacity expected by year-end. Analysts describe the deal as “transformational,” predicting that TeraWulf could triple its current computing capacity.
Why It Matters
This move marks a significant pivot for TeraWulf toward high-performance computing infrastructure, an industry experiencing rapid growth due to surging demand for artificial intelligence capabilities. Google’s involvement not only provides capital but also enhances the company’s credibility in the AI space.
The market’s response has been swift, with investors and analysts becoming more optimistic about the company’s long-term growth potential.
