Google Increases TeraWulf Stake to 14% for AI Expansion
Google provided a $3.2 billion backstop to TeraWulf to fund the expansion of its Lake Mariner data center campus following a capacity increase by Fluidstack.
Google has increased its pro forma equity stake in TeraWulf to 14%, providing a total $3.2 billion backstop to support debt financing for the expansion of the Lake Mariner data center campus in western New York. This arrangement follows an initial plan for an 8% stake and a $1.8 billion backstop, which was expanded after AI cloud provider Fluidstack exercised an option to add 160 megawatts of capacity via a new building, CB-5. This brings total contracted capacity at the site to 360 MW.
In exchange for the financial support, Google received warrants to purchase over 73 million shares. TeraWulf reported that its agreements with Fluidstack represent $6.7 billion in contracted revenue, with the potential to reach $16 billion through lease extensions. Operations at the CB-5 facility are expected to begin in the second half of 2026.
To further fund these projects and limit shareholder dilution, TeraWulf announced a $400 million offering of convertible senior notes due in 2031. The company's shares rose 10% in premarket trading following the announcement. This shift highlights a broader trend of bitcoin miners transitioning toward AI infrastructure to meet the rising global demand for computing capacity.
