TeraWulf stock rises as Google increases backstop to $3.2 billion

Published 18/08/2025, 13:18
© Reuters.

Investing.com -- TeraWulf Inc. (NASDAQ:WULF) stock rose 8.6% after the company announced that Google (NASDAQ:GOOGL) has increased its financial backstop to approximately $3.2 billion, while expanding its potential equity stake in the digital infrastructure company to approximately 14%.

The increase comes as Fluidstack, an AI cloud platform, exercised its option to expand at TeraWulf’s Lake Mariner data center campus in Western New York. The expansion includes a new purpose-built data center building (CB-5) that will provide an additional 160 MW of critical IT load, with operations expected to begin in the second half of 2026.

Google will provide an incremental backstop of $1.4 billion to support project-related debt financing and will receive warrants to acquire 32.5 million shares of TeraWulf common stock as part of the arrangement.

The CB-5 expansion builds on previously announced agreements under which TeraWulf is delivering more than 200 MW of AI-optimized data center capacity to Fluidstack. With this addition, the total contracted critical IT load for Fluidstack at the Lake Mariner campus increases to approximately 360 MW.

"This expansion underscores the unmatched scale and capabilities of the Lake Mariner campus," said Paul Prager, Chief Executive Officer of TeraWulf. "By adding CB-5, we are not only increasing our contracted capacity with Fluidstack, but also further deepening our strategic alignment with Google as a critical financial partner in delivering the next generation of AI infrastructure."

In a separate announcement, TeraWulf disclosed plans to offer $400 million in convertible senior notes due 2031 to qualified institutional buyers. The company intends to use the net proceeds to finance a portion of its data center expansion and for general corporate purposes.

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