TeraWulf (WULF), a Bitcoin (BTCUSD) mining and data center company, saw shares soar last week following a transformative deal backed by Alphabet (GOOGL). The company has signed two 10-year high-performance computing (HPC) colocation agreements with Fluidstack, a premier artificial intelligence (AI) cloud platform. Worth roughly $3.7 billion with optional extensions lifting the total to $8.7 billion, the agreements leverage TeraWulf's Lake Mariner campus’ 200 megawatts (MW) of capacity.
Google is underwriting $1.8 billion in Fluidstack’s lease obligations and, in exchange, will acquire about 41 million shares of WULF stock, equating to an approximately 8% equity stake. While analysts have raised their price targets as high as $13, the deal signals TeraWulf’s pivot into AI infrastructure and adds credibility.
