Key Takeaways
TeraWulf shifted from Bitcoin mining to AI infrastructure, securing a $3.7 billion Google-backed Fluidstack deal. With expansion potential to $8.7 billion, the agreement ensured predictable revenue.
TeraWulf made a bold shift from pure-play crypto mining to the booming AI infrastructure sector, sealing a landmark 10-year, $3.7 billion colocation lease deal with AI provider Fluidstack, which tech giant Google also backs.
The company financed Fluidstack’s $1.8 billion lease obligations, provided debt support, and secured warrants for approximately 41 million WULF shares, giving it an 8% ownership stake in the miner-turned-AI host.
TeraWulf, traditionally recognized as a Bitcoin [BTC] mining company, had felt the squeeze in 2025 as rising mining difficulty ate into profitability.
Needless to say, with this arrangement, TeraWulf is now positioned well for a major surge in revenue.
What drove the pivot?
With operational costs climbing and block rewards harder to secure, TeraWulf began exploring alternative revenue streams last year, and artificial intelligence quickly emerged as a promising frontier.
The company struck a long-term deal with Fluidstack, an AI cloud platform, to lease a substantial portion of its infrastructure.
Under the agreement’s terms, the company will supply 200 megawatts of IT load to Fluidstack over the next decade.
The deal, valued at roughly $3.7 billion in contracted revenue, gave TeraWulf a stable and predictable income stream outside the volatile Bitcoin market.
Having said that, Google’s involvement added even greater strategic weight.
Google’s hand in the deal
By supporting Fluidstack’s expansion into AI computing, Google highlighted the increasing convergence between high-performance infrastructure for AI workloads and the data centers that were once primarily used for cryptocurrency mining.
On top of that, the agreement also left room for an expanded partnership, with the potential commitment reaching $8.7 billion.
This scale of opportunity made the deal far more than a simple diversification move for TeraWulf; it represents a strategic leap toward building a strong presence in the rapidly growing AI infrastructure market.
Remarking on the same, TeraWulf CEO Paul Prager claimed,
“This is a defining moment for TeraWulf. We are proud to unite world-class capital and compute partners to deliver the next generation of AI infrastructure, powered by low-cost, predominantly zero-carbon energy.”
Market cheers the move
The market welcomed this news, with the company’s stock rising by 37% on the day, trading at $7.50. In fact, at press time, it was trading at $8.71 as per Google Finance.
Although TeraWulf’s shift toward AI infrastructure made the company’s balance sheet reliant on other sectors as well, this didn’t mean it was any less invested in crypto.
In fact, with the company’s mining operations continuing and substantial Bitcoin holdings, TeraWulf stayed rooted in the digital asset narrative.
