Google Acquires 8% Stake in Bitcoin Miner TeraWulf in $3.7B Deal

TeraWulf Announces $8.7B Deal with Fluidstack and Google

TeraWulf, an American Bitcoin mining company, has announced a major agreement with AI cloud platform Fluidstack, backed by Google. Including two 10-year HPC colocation contracts, this arrangement also paves the way for Google to become one of the major shareholders in TeraWulf. 

The strategic partnership poses a landmark for TeraWulf in its venture to further enlarge operations along with the giant tech producers.

Key Deal Details and Project Scope

Through these agreements, the Bitcoin mining company will supply in excess of 200 MW of critical IT load from its Lake Mariner facility, located in Western New York. This facility was custom-built to serve liquid-cooled AI workloads, either for high-performance computing. 

The contract value can rise to $8.7 billion subject to the two five-year extension options being exercised by the company. This gigantic deal is a testimony to the growing demand for scalable infrastructures that could run on AI-driven technologies.

Meanwhile, Fluidstack, the cloud platform mechanism providing critical compute services, will ensure vital operation of the facility. Aligning with supporting AI labs with scalable, fast infrastructure under the TeraWulf partnership is the agenda of Fluidstack. 

With the first phase involving about 40 MW expected to be operational in H1 of 2026, full deployment, meaning over 200 MW, is projected to be ready by the end of 2026.

Google’s Role and Investment

Under the agreement, Google shall backstop $1.8 billion of Fluidstack's lease obligations to support the debt financing of the project. Warrants will be issued to Google to purchase approximately 41 million shares of TeraWulf common stock.

The issuance will give Google an 8% equity stake in the Bitcoin mining company. This will increase Google's position as a Bitcoin miner and AI infrastructure provider. 

Additionally, the declaration that went into effect between TeraWulf, Fluidstack, and Google is further evidence of this. As the Bitcoin mining company expands in capacity and infrastructure with the backing of these leading tech companies, it has been quite an endorsement of these technologies on modern data centers. 

The focus on low-cost, predominantly zero-carbon energy to power the infrastructure also aligns with the industry's broader shift toward sustainability.

Project Costs and the Future Growth

It is estimated that the cost to construct a one MW center range from $8 to $10 million. This shows the magnitude of the operation and also the technical difficulties in constructing such huge infrastructures. 

The agreements outline the possibilities for further phase developments, with Fluidstack and the mining company intending to undertake other phases over the coming years. This collaboration with Fluidstack is a critical step towards supporting the AI space.

More so, the developments will gain relevance as the stages of building up infrastructure keep unfolding. The partnership project is a strategic collaboration with the aim to meet the increasing demand for AI and blockchain services.

At the same time, it will stress sustainable and scalable energy alternatives for the HPC environment.