TeraWulf (WULF) Soars as Google Increases Stake to 14%
Google Increases Stake in TeraWulf; WULF Jumps 13%
Shares of TeraWulf (WULF), a company focused on sustainable, high-capacity data centers for HPC and crypto mining, experienced a surge of approximately 13% following recent positive developments. Data from Yahoo Finance confirms the stock's upward movement.
Fluidstack Expands Data Center Deal
TeraWulf announced that Fluidstack, an AI cloud platform, is expanding its presence at the Lake Mariner campus in Western New York. Fluidstack has chosen to increase its footprint by adding a new purpose-built data center, CB-5, which will provide 160 MW of critical IT load. Operations are scheduled to commence in the second half of 2026.
Key Highlights:
- The expansion is based on a 10-year AI infrastructure hosting agreement between TeraWulf and Fluidstack.
- The addition of CB-5 increases Fluidstack’s total contracted critical IT load at Lake Mariner to approximately 360 MW.
- This represents $6.7 billion in contracted revenue, with the potential to reach $16 billion through lease extensions.
Google Increases Financial Backing
Google is set to provide an additional $1.4 billion backstop to support project-related debt financing. In return, Google will receive warrants to acquire 32.5 million shares of TeraWulf common stock.
Impact of Google's Investment:
- Google’s total backstop commitment increases to $3.2 billion.
- Google’s pro forma ownership stake in TeraWulf will rise to 14%.
TeraWulf CEO Paul Prager emphasized the significance of the expansion and Google's continued support: “This expansion underscores the unmatched scale and capabilities of the Lake Mariner campus... By adding CB-5, we are not only increasing our contracted capacity with Fluidstack, but also further deepening our strategic alignment with Google as a critical financial partner in delivering the next generation of AI infrastructure.”
Nazar Khan, TeraWulf CTO, noted that Fluidstack’s rapid expansion reflects confidence in TeraWulf’s infrastructure. He highlighted CB-5's design for high-density, liquid-cooled workloads, leveraging Lake Mariner’s infrastructure and connectivity. TeraWulf and Fluidstack are in discussions regarding additional capacity expansions at the facility.