The communications giant will support with USD 1.8 billion an agreement between TeraWulf and Fluidstack for the supply of 200 MW of capacity.
TeraWulf (WULF), a public company dedicated to Bitcoin mining and operating data centers, signed a ten-year contract with the artificial intelligence firm Fluidstack on August 14. This operation will receive financial backing from Google, which will contribute 1.8 billion dollars towards Fluidstack's lease obligations, facilitating the financing of the project.
In exchange, #Google will receive about 41 million shares of TeraWulf at a pre-agreed price, equivalent to approximately 8% of the company's equity stake.
The agreement, revealed by the company on social network X, stipulates that TeraWulf will supply more than 200 megawatts (MW) of critical IT load (electric capacity intended to power servers and essential equipment) at its Lake Mariner campus in New York.
The contract, which includes two optional five-year extensions, implies initial revenues of about 3.7 billion dollars, with the potential to reach approximately 8.7 billion if the extensions are exercised.
This type of contract allows companies like Fluidstack to install their specialized hardware in a third party's facilities, leveraging their infrastructure without incurring the costs of building and maintaining their own data center.
For WULF, this expansion of its business is an escape from the volatility of mining, given the fluctuations in the price of bitcoin (BTC), although it currently remains close to its recent all-time high of 124,000 dollars.
On August 14, TeraWulf's shares rose from 5.50 to 8.48 dollars, representing an increase of 54.2% in its stock price.
This move positions TeraWulf as a hybrid player between Bitcoin mining and the provision of infrastructure for artificial intelligence workloads, a sector that demands high computing capacity and stable energy supply.
Via Grok
