Google boosts stake in Bitcoin miner TeraWulf to 14% with $3.2B investment, stock surges

Google is doubling down on TeraWulf, boosting its stake in the bitcoin miner and datacenter operator to 14% from 8% in a deal valued at $3.2 billion. The investment deepens their partnership and gives TeraWulf new backing for its Lake Mariner expansion in New York. Shares of the four-year-old Maryland startup climbed more than 10% on the news.

As part of the deal, Google will provide up to $1.4 billion in additional backstop, bringing its total support to about $3.2 billion, CNBC reported. The arrangement allows Google to buy roughly 32.5 million shares, giving the tech giant a bigger foothold in TeraWulf’s future.

“This agreement solidifies the company’s strategic alignment with Google to help build advanced artificial intelligence infrastructure,” CEO Paul Prager said in a statement.

Founded on February 8, 2021, by Paul Prager and Nazar Khan, TeraWulf builds and operates bitcoin mining facilities in the United States powered by clean energy sources, including nuclear, hydro, and solar.

The announcement follows a breakout week for TeraWulf, with shares soaring nearly 90% after the company signed two 10-year computing deals with AI cloud provider Fluidstack. The agreements secure more than 200 megawatts of datacenter capacity at Lake Mariner, positioning the facility as a key hub for both crypto mining and AI compute.

Prager told CNBC’s Power Lunch last week: “If you have quality energy infrastructure and a management team and folks on the ground that understand how to extract value for it, this is the time, Lake Mariner is the place.”

Monday’s update adds more fuel to the expansion. TeraWulf now expects critical IT load at Lake Mariner to top 360 MW, with Fluidstack holding an option for another 160 MW. The company said the deals represent $6.7 billion in contracted revenue, with the potential to stretch to $16 billion through lease extensions. Operations are expected to kick off in the second half of 2026.

“Fluidstack’s decision to expand so soon after our initial agreement speaks volumes about the quality, readiness, and scalability of our infrastructure,” CTO Nazar Khan said.

TeraWulf also revealed plans to raise $400 million through convertible senior notes due in 2031, adding another layer of financing to fuel its growth.