Google Becomes Largest Shareholder in TeraWulf With 14% Stake, Backing AI-Driven Expansion

Tech giant Google has increased its stakes over Bitcoin miner TeraWulf to 14% from the previous 8%, officially becoming its largest shareholder after expanding financial support in a lease agreement with AI Infrastructure provider Fluidstack.

The move not only signals Google’s growing interest in AI-powered data infrastructure but also highlights how Bitcoin miners are diversifying into high-performance computing.

TeraWulf disclosed in a recent shareholder call that it had signed a 10-year colocation lease agreement with Fluidstack. As part of the deal, Google agreed to increase its financial backstop — a guarantee covering lease obligations — to $3.2 billion.

In return, Google received warrants to purchase more than 73 million shares, representing a 14% equity stake in TeraWulf.

Kerri Langlais, TeraWulf’s chief strategy officer, confirmed that the new equity makes Google its top shareholder, describing the investment as “powerful validation from one of the world’s leading technology companies” and recognition of TeraWulf’s zero-carbon infrastructure.

Importantly, the backstop is not tied to TeraWulf’s corporate debt or its Bitcoin mining operations, but rather to contracted revenues from AI and high-powered computing (HPC) services at the company’s facilities.

Fluidstack Expands at Lake Mariner

The deal also enables Fluidstack to expand operations at TeraWulf’s Lake Mariner data center in New York, where a new purpose-built facility is scheduled to go live in the second half of 2026.

If Fluidstack fails to meet its obligations under the lease, Google would cover the $3.2 billion commitment.

Langlais emphasized that the guarantee provides long-term security for AI and HPC workloads hosted at Lake Mariner, while Bitcoin mining continues separately as a smaller part of the company’s operations.

The shift comes at a time when Bitcoin miners are increasingly turning toward AI and HPC hosting as alternative revenue streams, especially after the April 2024 Bitcoin halving reduced block rewards to 3.125 BTC.

Langlais explained that TeraWulf will maintain but not expand its mining platform, noting that mining remains valuable in the short term for generating cash flow and stabilizing the electrical grid.

Over the long term, however, the company sees “greater value in transitioning those megawatts” to AI and HPC, backed by long-term contracts with major partners like Fluidstack and Google.

Analysts agree the shift could be lucrative. Asset manager VanEck estimated in August 2024 that if publicly traded Bitcoin miners reallocated just 20% of their capacity to AI and HPC by 2027, it could generate an additional $13.9 billion in annual profits over 13 years.

TeraWulf expects its agreement with Fluidstack to generate $6.7 billion in revenue, with the potential to reach $16 billion if lease extensions are exercised.

Market Reaction and Stock Rally

Following the announcement, TeraWulf’s stock (WULF) surged 17% in Monday’s early trading session, reaching $10.57 before settling at $9.38 by the close.

Despite the pullback, shares have gained more than 72% in the past five days since the Fluidstack agreement was revealed.

The rally reflects growing investor optimism that TeraWulf’s pivot toward AI infrastructure, backed by Google’s financial guarantee, could deliver long-term growth even as Bitcoin mining profitability faces continued pressure.