TeraWulf Shares Rally as Google Increases Stake to 14%
Google has become the largest shareholder in TeraWulf Inc. (NASDAQ: WULF), a Bitcoin mining and AI/high-performance computing (HPC) data center operator, by increasing its stake to 14%.
The transaction was disclosed on Aug. 18, 2025, after Google acquired warrants for an additional 32.5 million shares, after it initially acquired around 41 million shares the previous week.
Google’s $3.2B Investment Supports TeraWulf’s AI Ambitions
The investment is linked to a partnership with AI infrastructure provider FluidStack, backed by Google’s $3.2 billion backstop for FluidStack’s lease obligations at TeraWulf’s sites.
The deal is based on the Bitcoin mining firm’s Lake Mariner data center in New York, powered by zero-carbon nuclear and hydroelectric energy.
FluidStack expanded its colocation by 160 MW, building on an initial 200+ MW, 10-year AI hosting agreement.
The new CB-5 facility will begin operations in the second half of 2026, with an expected $6.7 billion to be generated in revenue for TeraWulf over the initial term, and an extension possibly pushing the contract’s revenue to $16 billion.
Google’s backstop, limited to AI/HPC revenues and excluding Bitcoin mining, secures FluidStack payments’ financial stability for the Bitcoin miner’s transition to high-margin AI infrastructure.
TeraWulf Shares Surge with Google’s Support
TeraWulf’s stock surged on Aug. 18, 2025, increasing by 17% intraday to a high of $10.57 before closing at $9.38, up 4.57% from the previous close of $8.97.
TeraWulf Stock Chart (Source: Yahoo Finance)
Over the past five days, the stock has increased by 73.70%, probably due to the attention surrounding the Google and FluidStack partnerships. After-hours trading showed marginal volatility.
Analyst sentiment remains highly bullish, with 11 out of 12 analysts giving WULF a “Strong Buy” or “Buy” rating and an average price target of $10.83.
To raise capital for expansion, the mining company announced a $400 million convertible senior notes offering due in 2031, with an option for an additional $60 million.
The company’s shift from Bitcoin mining to AI and HPC is in line with an industry trend, as a VanEck report predicts miners could generate an additional $13.9 billion annually by 2027 by redirecting 20% of energy capacity to AI/HPC.
TeraWulf, the fifth-largest Bitcoin miner, is leveraging its sustainable energy infrastructure, with Google’s backing a sign of strong market validation.
TeraWulf’s Switch to AI with Google’s Support
Google’s investment shows the growing demand for AI data centers due to generative AI and cloud computing.
By partnering with FluidStack and TeraWulf, Google secures access to scalable, low-latency, zero-carbon infrastructure on the East Coast, which will strengthen its position against competitors like AWS and Azure.
The mining community discussions suggest possible latency benefits for East Coast users, although some of the metrics remain speculative and unconfirmed.
TeraWulf is moving forward with its transition from volatile Bitcoin mining to stable AI/HPC revenues, an approach that has been adopted by most crypto miners. The company plans to maintain its mining operations but prioritize AI for long-term growth.
