Google acquires stake in Bitcoin mining company
TeraWulf (WULF), a public Bitcoin mining company that operates data centers, signed a ten-year contract with artificial intelligence firm Fluidstack on Aug. 14. This operation will receive financial backing from Google, which will provide $1.8 billion of Fluidstack’s lease obligations, facilitating the financing of the project.
In return, Google will receive about 41 million shares of TeraWulf at a pre-agreed price, equivalent to about 8% of the company’s shareholding.
The agreement, unveiled by the company on the social network X, sees TeraWulf supply more than 200 megawatts (MW) of critical IT load (electrical capacity intended to power servers and essential equipment) at its Lake Mariner campus in New York.
The contract, which includes two optional five-year extensions, involves initial revenues of about $3.7 billion, with the potential to reach approximately $8.7 billion if extensions are exercised.
These types of contracts allow companies like Fluidstack to install their specialized hardware at a third party’s facilities, leveraging their infrastructure without incurring the costs of building and maintaining a data center of their own.
For WULF, this expansion of its business is an escape from the volatility of mining, given the ups and downs of the price of bitcoin (BTC), although it currently remains close to its recent all-time high of $124,000.
On August 14, TeraWulf shares rose from $5.50 to $8.48, representing a 54.2% increase in its price.
This move positions TeraWulf as a hybrid player between Bitcoin mining and the provision of infrastructure for artificial intelligence workloads, a sector that demands large computing capacity and a stable energy supply.
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