The tech giant Google has become the largest shareholder of TeraWulf, with a shareholding ratio reaching 14%. Previously, Google acquired more shares by increasing its financial backing in the leasing agreement between the Bitcoin mining company and AI infrastructure provider Fluidstack.
In a shareholder conference call on Thursday, TeraWulf disclosed that it has signed a 10-year joint custody leasing agreement with Fluidstack. Google provides financial backing for this leasing agreement and, in return, has obtained warrants to purchase company shares.
TeraWulf's Chief Strategy Officer Kerri Langlais stated in an interview with Cointelegraph that Google's total financial backing in this agreement has now increased to $3.2 billion, acquiring over 73 million TeraWulf warrants, corresponding to 14% of the company's equity.
Langlais added that Google's new equity makes it the largest shareholder of TeraWulf, providing "strong validation from a leading global technology company," and emphasized "the strength of our zero-carbon infrastructure and the scale of future opportunities."
TeraWulf announced on Monday that Fluidstack has exercised its expansion option in the agreement to build a custom data center at the Lake Mariner data center campus in New York, which is expected to be operational in the second half of 2026.
Langlais told Cointelegraph that the financial backing supports Fluidstack's long-term leasing commitment at Lake Mariner, and if the AI company fails to meet its financial obligations, Google will compensate with $3.2 billion.
"This guarantee is not against TeraWulf's corporate debt, and we cannot access these funds," she said.
Since the Bitcoin (BTC) halving in April 2024, miner rewards have decreased to 3.125 BTC, affecting overall profitability, and more mining companies are beginning to shift energy capacity towards AI and high-performance computing (HPC) hosting services for revenue diversification.
Langlais stated that in the future, TeraWulf plans to maintain its existing Bitcoin mining platform at Lake Mariner but will not expand further. The company will focus on "building, hosting, and delivering for partners and shareholders."
However, in the medium to long term, the company believes that "shifting this megawatt capacity towards AI and HPC loads is more valuable," and long-term contract revenues with blue-chip partners like Fluidstack and Google "will drive growth and value creation."
Asset management firm VanEck reported in August 2024 that if publicly listed Bitcoin mining companies shift 20% of their energy capacity towards AI and HPC by 2027, they could add an additional $13.9 billion in profits annually for 13 years.
TeraWulf expects the agreement with Fluidstack to generate $6.7 billion in revenue, potentially reaching up to $16 billion by extending the lease term.
During Monday's trading session, TeraWulf's stock (WULF) surged, reaching a high of $10.57, up 17% from the previous trading day's closing price of $8.97.
However, by the end of trading, the mining company's stock price fell back to $9.38 and dropped another 1.28% in after-hours trading.
Since TeraWulf first announced the agreement with Fluidstack last Thursday, its stock price has increased by over 72% in the past five days.
Related: Strategy increased its holdings by $51.4 million to 430 Bitcoin (BTC) last week.
Original article: “Google increases TeraWulf's shares to 14%, becoming the largest shareholder”
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