TeraWulf’s $3.7 billion AI Hosting Deal Backed by Google, Shares Surge 48%

- Google backs TeraWulf's $3.7 billion AI deal. - Strategic pivot signals shift from volatile crypto mining to stable revenue. On August 14, 2025, Bitcoin miner TeraWulf unveiled a transformative $3.7 billion artificial intelligence (AI) hosting deal with Fluidstack. This agreement marks a strategic pivot away from its volatile Bitcoin mining roots. Alphabet's Google backs the deal, signaling a move toward predictable revenue streams as TeraWulf reshapes its financial profile. Under the landmark 10-year colocation agreement, Google will provide a $1.8 billion financial backstop for Fluidstack’s lease obligations. In return, Google will receive warrants for approximately 41 million shares of TeraWulf’s common stock, equivalent to an 8% ownership stake in the company. Industry analysts view Google’s equity involvement as a strong endorsement of TeraWulf’s AI-focused transformation. The deal includes provisions for two optional five-year extensions, which could increase its total value to $8.7 billion. To support the agreement, TeraWulf plans to expand its Lake Mariner data center in New York by over 200 megawatts. Initial deployments for this phased expansion will begin by mid-2026, reaching full capacity by the end of the same year. Industry experts note this pivot will mitigate the financial instability of Bitcoin mining operations, as the Fluidstack partnership provides predictable cash flows from AI hosting services and serves as a major de-risking event for TeraWulf. This positions the company for sustainable growth and resilience within the evolving technology sector. The announcement sparked a wave of investor optimism, causing TeraWulf’s stock (WULF) to surge by up to 48% during intraday trading. Analysts highlight Google’s participation as a crucial vote of confidence in the company's strategic shift. According to CoinMarketCap on August 14, Bitcoin (BTC) was trading at $117,878.66 as of 18:09 UTC, which reflects a 3.12% decrease in value over the past 24 hours.