Another cryptocurrency miner transforms into AI, and TeraWulf rises over 26% after Google acquires shares
TeraWulf's stock price rose over 26% due to Google's acquisition of an 8% stake. The company has transitioned from traditional cryptocurrency mining to providing high-performance computing and artificial intelligence infrastructure services, similar to CoreWeave. TeraWulf has signed two ten-year agreements with Fluidstack to provide over 200 megawatts of computing clusters for large cloud service providers, with a total contract value of up to $8.7 billion. Google will invest $1.8 billion to support project construction and will receive approximately 41 million warrants. The CEO stated that this deal accelerates the company's expansion into the high-performance computing sector
The Zhitong Finance APP noted that on Thursday, at the beginning of the U.S. stock market, TeraWulf (WULF.US) stock price surged 26% after it was disclosed that Google would acquire 8% of the company's shares. This traditional cryptocurrency mining company is transforming to provide high-performance computing and artificial intelligence infrastructure services to large-scale customers, mirroring the path of CoreWeave (CRWV.US) from miner to supercomputing service provider.
TeraWulf has signed two ten-year agreements with Fluidstack to provide high-performance computing clusters for large cloud service providers.
According to the agreements, TeraWulf will utilize its Lake Mariner data center campus located in western New York to deliver over 200 megawatts of critical IT load.
The company stated that the total contract revenue from the agreements amounts to $3.7 billion, and if the two five-year renewal options are exercised, the total contract value will increase to $8.7 billion.
Google has agreed to invest $1.8 billion to support project construction, which will be used for project-related debt financing. In exchange, Google will receive warrants to purchase approximately 41 million shares of TeraWulf common stock, equivalent to an 8% equity stake.
TeraWulf CEO Paul Prager stated, "We are honored to partner with world-class capital and computing partners to drive the next generation of AI infrastructure with low-cost, zero-carbon energy," adding, "This deal confirms Lake Mariner's status as a top supercomputing campus and accelerates our strategic expansion into the high-performance computing sector."
"The campus is equipped with dual 345 kV power transmission lines, a closed-loop water cooling system, and ultra-low latency fiber optic networks, specifically designed for today's most demanding AI workloads," noted TeraWulf CTO Nazar Khan, "Our deep collaboration with Fluidstack enables us to provide fully customized and scalable solutions."
