TeraWulf Secures $3B Google-Backed AI Data Center Financing
TeraWulf is planning to raise $3B in high-yield bonds or leveraged loans arranged by Morgan Stanley, secured by Google’s $3.2B backstop. As part of the deal, Google will take a 14% stake, becoming TeraWulf’s largest shareholder. The financing will fund a 10-year hosting agreement to deploy over 200 MW of liquid-cooled capacity across data centers optimized for AI infrastructure services. Following announcements of its AI infrastructure and colocation leases—including a previous $3.7B, 10-year deal with Fluidstack—TeraWulf’s stock jumped as much as 70%, reflecting broad investor optimism. The move underscores a trend of bitcoin mining firms leveraging existing energy infrastructure to expand into AI data centers, helping TeraWulf diversify revenue streams and meet surging demand for specialized compute.
Bullish
In the short term, TeraWulf’s announcement of a $3B Google-backed financing and a long-term AI infrastructure lease drove its shares up 70%, reflecting strong investor confidence and suggesting positive price momentum. The deal enhances TeraWulf’s growth prospects by diversifying from bitcoin mining into high-demand AI data centers, a trend that has historically attracted capital. Over the long term, Google’s 14% stake and backstop support may improve financing terms and credit ratings, supporting further expansion. However, execution risks and increased leverage remain factors to monitor. Overall, the market reaction and strategic shift point to a bullish outlook for TeraWulf’s stock and its exposure to the broader crypto market.