- Google boosts TeraWulf backstop to $3.2B, raising its equity stake to 14%.
- TeraWulf expands Lake Mariner with CB-5, adding 160 MW and $6.7B in revenue potential.
- Mining firms shift capacity to AI hosting after 2024 halving cuts Bitcoin rewards.
TeraWulf has confirmed a major expansion of its partnership with Google, securing a massive $3.2 billion financial backstop to build out a new 160-megawatt (MW) data center at its Lake Mariner campus in New York. But if you think this is a Bitcoin story, you’re only half right.
In exchange for the financial support, Google will receive warrants to purchase 32.5 million shares of TeraWulf, a deal that raises its equity stake in the company to about 14%.
The Big “Pivot to AI”
According to TeraWulf’s Chief Strategy Officer, Kerri Langlais, this blockbuster deal is specifically for contracted artificial intelligence (AI) and high-performance computing (HPC) workloads; it does not apply to the company’s Bitcoin mining operations.
Related: HIVE and TeraWulf: Efficiency Key for Bitcoin Miners Post-Halving
This move shows a broader shift happening across the entire mining sector. Following the April 2024 Bitcoin halving, which cut block rewards in half, many companies are now redirecting their massive power capacity toward the booming AI and HPC markets to find new revenue streams.
While TeraWulf will continue its Bitcoin mining operations, the company confirmed it does not plan to expand that side of its business.
The Long-Term Vision: A Digital Infrastructure Company
TeraWulf executives emphasized that while Bitcoin mining provides near-term cash flow and contributes flexible load support to the electrical grid, the company sees greater future value in transitioning their power capacity toward these contracted AI and HPC workloads.
Related: Google Exempts Non-Custodial Wallets From Play Store Licensing Rules After Pushback
A report published by VanEck backs up this strategy. The asset manager projected that if public mining firms converted just 20% of their capacity to AI hosting, the sector could generate an additional $13.9 billion in annual revenue.
TeraWulf’s CEO, Paul Prager, stated that this expansion strengthens the company’s alignment with Google as it builds out the next generation of infrastructure for AI.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
