Key Notes
- The 10-year agreement provides 200 MW of critical IT capacity at TeraWulf's Lake Mariner facility in New York.
- Google's financial backing includes purchase warrants for 41 million shares, representing approximately 8% ownership.
- TeraWulf stock surged 38% following the announcement despite reporting $79.8 million losses in H1 2024.
Data center infrastructure firm TeraWulf has entered a high-performance computing (HPC) colocation agreement with cloud services provider Fluidstack worth at least $3.7 billion.
Under the terms of the deal announced on Aug. 14 , TeraWulf will provide at least 200 MW of critical IT load at its Lake Mariner data center campus in New York over a period of 10 years. The arrangement contains two 5-year extension options which, if exercised, would bring total revenue to $8.7 billion over 20 years.
Google has agreed to backstop $1.8 billion of Fluidstack’s lease obligations in exchange for purchase warrants for approximately 41 million shares of TeraWulf common stock, which would give the Silicon Valley heavyweight a pro forma equity ownership stake of around 8%.
In the wake of the news, TeraWulf stock (WULF) opened at approximately $7.20 on Aug. 14 after settling at $5.46 to close the previous day. The stock reached as high as $8.06 in early trading and, as of the time of this article’s publication, sits at approximately $7.54, according to data from MarketWatch .
A five-day trading view for WULF. Source: MarketWatch
The stock bump could be a sign that there’s light at the end of the tunnel for TeraWulf after operating at a loss for most of 2024. According to a report from Finance Feeds , the mining and infrastructure firm took an $18.4 million net loss for the second quarter, bringing its year-over-year deficit to $79.8 million for the first half. Revenues, however, are up and the firm retains a strong position going into the third quarter with $90 million split between cash and Bitcoin BTC $118 271 24h volatility: 3.4% Market cap: $2.35 T Vol. 24h: $76.39 B reserves. It also has $500 million in convertible notes on its balance sheet which are due in 2030.
Just a year ago, in the summer of 2024, TeraWulf was reportedly considering another merger as it dealt with the wake of the Bitcoin halving . However, strong business on the back of its artificial intelligence and high-performance computing operations has its stock up over 108% year over year.
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