Bitcoin Miner TeraWulf Secures $3.7 Billion AI Hosting Deal Backed by Google With 8% Equity Stake

Bitcoin Miner Strikes Multi-Billion Dollar AI Deal With Google Support

Bitcoin mining firm TeraWulf is making one of the largest shifts from crypto mining to artificial intelligence infrastructure yet, securing a 10-year agreement worth $3.7 billion with AI hosting provider Fluidstack.

The contracts cover more than 200 megawatts of high-performance computing capacity at TeraWulf’s Lake Mariner site in New York, with options to extend for another ten years, potentially lifting the total value to $8.7 billion.

Google Puts $1.8B Behind AI Buildout

As part of the arrangement, Google will guarantee $1.8 billion of Fluidstack’s lease commitments, a move that helps secure financing for the project.

In exchange, the tech giant will receive warrants for about 41 million TeraWulf shares, equal to an estimated 8% equity stake if exercised.

The company said Google’s involvement “strengthens the financing structure” and provides a platform for scaling AI infrastructure quickly.

Lake Mariner To Host Over 200 MW Of AI Power

The Lake Mariner campus is purpose-built for liquid-cooled, high-density AI workloads.

TeraWulf plans to bring the first 40 MW of capacity online in the first half of 2026, with full deployment expected by year-end.

The facility is equipped with dual 345 kV transmission lines, closed-loop water cooling and ultra-low-latency fibre connectivity.

Fluidstack will also have 30-day exclusivity on a further 160 MW at TeraWulf’s CB-5 site, which could expand the project further.

Financial Outlook Boosted By AI Shift

TeraWulf estimates it will invest between $8 million and $10 million per megawatt in infrastructure buildout, aiming for around 85% net operating income margins on the AI hosting business.

That would translate to roughly $315 million in annual revenue once fully operational.

The move comes as Bitcoin miners face tighter margins following the recent halving, with TeraWulf’s BTC production falling from 699 BTC in Q2 2024 to 485 BTC in the same period this year.

Google Clarifies Crypto Wallet Rules Amid Industry Confusion

Separately, Google Play has updated its policies for custodial crypto wallet providers in over 15 jurisdictions, including the US and EU, effective 29 October.

The rules require US developers to register as money services businesses or transmitters, and EU developers to register as crypto-asset service providers.

The announcement initially caused uncertainty, with critics pointing to a lack of clarity.

Rich Widmann, head of Strategy for Web3 at Google Cloud, later said:

“The policy was not intended to cover non-custodial wallets but imprecisely used the term ‘software wallets’ without nuance which led to confusion.”