Synopsis– TeraWulf, a U.S.-based Bitcoin miner, is preparing a massive $3 billion funding round to transition its operations from crypto mining to artificial intelligence (AI) infrastructure. The financing, coordinated by Morgan Stanley and backed by Google, signals one of the most significant pivots in the industry to date.
$3 Billion Raise Backed by Google
According to TeraWulf CFO Patrick Fleury, the company plans to raise $3 billion through debt markets as soon as October. The deal will be structured with Google’s $1.4 billion backstop, lifting its overall commitment to $3.2 billion. This move is expected to improve credit ratings and attract investors in the high-yield bond or leveraged loan market.
The funding will primarily support TeraWulf’s Lake Mariner data center expansion in Western New York. With soaring demand for AI workloads, space and power have become scarce, and crypto miners are well-positioned since they already control both. Fleury stressed that Google’s involvement lowers financing risks and strengthens confidence in the offering.
Transition from Bitcoin to AI
The AI boom has shifted the strategy of several crypto mining companies struggling with Bitcoin’s price volatility. TeraWulf, known for its zero-carbon energy mix, is now repositioning itself as a high-performance computing provider. Its data centers, powered by nuclear and hydro energy, are designed to host AI operations that need large power capacity and advanced cooling systems.
This transition is not sudden. In August, TeraWulf signed a $3.7 billion colocation lease agreement with Fluidstack, an AI cloud provider backed by Google. The 10-year contract secures over 200 megawatts of capacity and further aligns the miner with AI’s future growth. Google’s guarantees make Fluidstack a reliable partner in the eyes of lenders, adding to TeraWulf’s credibility.
Investor Buzz
The market reacted sharply to the announcement. Shares of TeraWulf, listed as WULF on Nasdaq, spiked 12% on Thursday, touching an intraday high of $11.72. However, the stock later pulled back, closing the day at $10.97, down 3.7% in after-hours trading. Even so, TeraWulf shares remain up 94% since the start of 2025, underscoring investor optimism about its AI pivot.
A similar reaction had followed August’s Fluidstack deal, when the stock surged 80% in the days after the announcement. Analysts say enthusiasm is fueled by the dual-revenue model that combines AI colocation services with Bitcoin mining, offering more stability than crypto volatility alone.
Ripple Effects Across the Sector
TeraWulf is not alone in this shift. Cipher Mining, another U.S.-based miner, revealed a similar deal this week with Fluidstack and Google. Cipher will provide new data center space while Google acquires a 5.4% stake and guarantees $1.4 billion of its obligations.
These partnerships highlight a growing wave of crypto miners moving into AI and cloud services. Analysts expect companies to be valued far higher under this model, potentially expanding from three to five times EBITDA to as much as fifteen times. Still, execution risks remain, including high construction costs and energy constraints.
Even with those risks, Google’s support is seen as a game-changer. Its $3.2 billion combined exposure signals a broader strategy to secure scalable AI infrastructure while leveraging the specialized facilities built for Bitcoin mining. For TeraWulf, the success of this $3 billion raise could mark its transformation into a major AI hosting provider.
Written By Fazal Ul Vahab C H
