TL;DR
- Scale and stakes: Google will backstop $1.8 billion of Fluidstack lease obligations and receive warrants for about 41 million TeraWulf shares, equating to roughly 8% pro forma ownership.
- Revenue runway: Two 10-year colocation agreements lock in around $3.7 billion in revenue, with options that could lift the total to about $8.7 billion, while phase one delivers roughly 40 megawatts.
- Strategic pivot: The deal pairs zero-carbon power with liquid-cooled AI capacity, provides lower-cost capital, and drew a strong stock reaction, as TeraWulf balances mining with high-performance computing.
Google is making a significant move with Bitcoin miner TeraWulf, agreeing to support $1.8 billion related to new AI hosting agreements while acquiring warrants that represent about an 8% ownership. The deals with AI cloud platform Fluidstack allocate 200 megawatts of performance capacity at TeraWulf’s Lake Mariner facility in Western New York. Shares jumped as investors priced in contracted revenue and a deeper push into zero-carbon data infrastructure.
Deal structure and revenue visibility
Under two 10-year colocation contracts, TeraWulf will provide over 200 megawatts of essential IT load to Fluidstack for liquid-cooled AI tasks. The agreement signifies around $3.7 billion in guaranteed revenue, with two five-year extension options that could increase the total to nearly $8.7 billion. To assist with financing, Google will guarantee Fluidstack’s lease commitments and obtain warrants for about 41 million TeraWulf shares, equating to roughly 8% pro forma ownership.
Capacity buildout and timelines
Phase one of roughly 40 megawatts is slated to go live in the first half of 2026, with the full 200-plus megawatts targeted by year’s end 2026. The Lake Mariner site is engineered for scale and resiliency, aligning with AI customers who require liquid cooling and rapid deployment. Fluidstack also received a 30-day exclusivity window for a CB 5 facility that could add 160 megawatts of IT load if exercised.
Why Google is in the mix
By guaranteeing lease payments, Google de-risks financing while securing scalable AI capacity and upside via equity warrants. The structure gives TeraWulf lower-cost capital and a marquee partner as it diversifies beyond Bitcoin mining into high-performance computing. Management called it a defining moment that unites world-class capital with low-cost, predominantly zero-carbon power, positioning the company to serve leading AI labs.
Market reaction and what comes next
TeraWulf shares rose to the low 20% during the day, showing excitement for long-term revenue and a healthier balance sheet. The company may tap capital markets to fund portions of the build, while Google’s backstop and Fluidstack obligations underwrite debt capacity. Execution risks include equipment delivery, construction, and interconnection, yet the pivot shows how crypto-born operators can monetize zero-carbon power and data center expertise in the AI cycle.
