Synopsis– TeraWulf shares surged after Google committed $3.2B for AI-focused data centre expansion, signalling rising institutional confidence, accelerating revenue growth, and a strategic pivot beyond cryptocurrency mining.
A leading player in cryptocurrency mining and data centre operations has caught market attention after a major tech giant increased its ownership stake. The move not only drove the company’s stock higher but also signals growing interest in expanding data centre capacity, with a strong focus on artificial intelligence-driven infrastructure.
Terawulf stock, with a market capitalisation of $3.44 billion, rose to $10.52, hitting an intraday high of up to 19 percent from its previous closing price of $8.97. Furthermore, the stock over the past 5 days has given a return of 61 percent.
Google Deal
Google is committing $3.2 billion to backstop TeraWulf’s expansion of its data centre campus in western New York, securing warrants to buy more than 73 million shares of the company in return. The arrangement first came to light in TeraWulf’s second-quarter earnings last week, when the company said Google would provide a $1.8 billion backstop for an 8% stake. That figure was raised to $3.2 billion on Monday, after AI cloud provider Fluidstack extended its lease under a new 10-year agreement with TeraWulf.
Speaking to analysts last Thursday, CEO Paul Prager described Google’s support as a strong endorsement of the company’s strategy, calling it “an extraordinary vote of confidence from one of the most influential players in AI.” The data centre at the heart of the deal, TeraWulf’s Lake Mariner facility in western New York, is expected to rank among the largest in the U.S. Alongside Google’s backing, TeraWulf also unveiled a $400 million debt offering this week to help fund the project.
TeraWulf, once focused purely on bitcoin mining, is part of a broader shift among mining firms moving into AI infrastructure to meet surging demand. Analysts estimate that the global data centre market could reach nearly $585 billion by 2032, roughly double its expected size in 2024, as the rise of artificial intelligence drives much higher computing needs.
Financial Highlight
In Q3FY25, the company reported revenue of $140.1M, marking a sharp improvement from $69.2M in Q2FY25 and $15.0M in Q1FY25. This translates to a 102.4% QoQ growth from Q2 to Q3 and an even stronger 832% QoQ growth from Q1 to Q2. Overall, revenue momentum has accelerated consistently across quarters, indicating strong business traction and scaling.
On the profitability front, Q3FY25 losses stood at -$72.4M, a slight improvement from -$73.4M in Q2FY25 and a significant recovery from -$90.8M in Q1FY25. This reflects a 1.4% QoQ reduction in losses versus Q2 and a 20.2% QoQ decline in losses compared to Q1. While the company remains in negative territory, improving margins alongside surging revenue point toward operational leverage building up over the fiscal year.
Written By Fazal Ul Vahab C H
