Google Lifting Stake in TeraWulf With Additional $1.4 Billion Backstop

By Robb M. Stewart

Google is lifting its stake in TeraWulf, supporting the bitcoin miner and artificial intelligence-computing company's expansion of its Lake Mariner data center campus in Western New York.

TeraWulf said Monday that Alphabet's Google will provide an incremental $1.4 billion backstop to support project-related debt financing, and in exchange will receive warrants to buy 32.5 million shares of TeraWulf. The commitment will lift Google's investment to about $3.2 billion, and its total pro forma equity stake in TeraWulf to roughly 14% from the about 8% previously agreed.

The additional funding backs TeraWulf after AI cloud platform Fluidstack exercised an option to expand at the Lake Mariner data center campus, which will see the addition of a new purpose-built data center building providing an incremental 160 megawatts, with operations expected to commence in the second half of 2026.

The expansion builds on previous agreements under which TeraWulf is delivering more than 200 MW of AI data center capacity to Fluidstack at Lake Mariner. With the new building, total contracted critical IT load for Fluidstack at the campus increases to about 360 MW.

TeraWulf and Fluidstack are in talks regarding additional capacity expansions.

Earlier this month, TeraWulf said it secured two 10-year agreements with Fluidstack and that Google planned to backstop $1.8 billion of its lease obligations to support the buildout and project-related debt financing. TeraWulf said its agreements with Fluidstack represent $6.7 billion in contracted revenue, with the potential to reach $16 billion with lease extensions.

TeraWulf on Monday also said it plans to offer $400 million in convertible senior notes due 2031.

Write to Robb M. Stewart at robb.stewart@wsj.com