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- TeraWulf has confirmed a large-scale buildout at Lake Mariner, supported by Google’s $3.2 billion guarantee.
- In return, Google secured warrants for 32.5 million shares of the eco-focused Bitcoin miner, boosting its stake to 14%.
TeraWulf (WULF), one of the largest U.S.-listed Bitcoin miners and a growing player in high-performance computing (HPC) hosting, is set to expand its Lake Mariner data center in Western New York. The move comes with a major boost from Google, which has deepened its bet on the company.
The tech giant has nearly doubled its stake, going from 8% to about 14%, through warrants tied to a $3.2 billion backstop agreement that secures TeraWulf’s lease commitments with AI hosting firm Fluidstack.
Fluidstack is moving forward with plans to grow its presence at TeraWulf’s Lake Mariner data center in New York. The company will build a new facility, called CB-5, that adds 160 megawatts of critical IT capacity.
Once completed, it will bring the site’s total contracted load to about 360 MW. Construction is underway, with operations expected to kick off in the second half of 2026.
“This expansion underscores the unmatched scale and capabilities of the Lake Mariner campus. By adding CB-5, we are not only increasing our contracted capacity with Fluidstack, but also further deepening our strategic alignment with Google as a critical financial partner in delivering the next generation of AI infrastructure,” noted Paul Prager, TeraWulf’s CEO.
The backstop arrangement ensures that if Fluidstack cannot meet its lease obligations, Google will step in with the guaranteed funds. Langlais highlighted that this guarantee is solely tied to AI and high-performance computing (HPC) lease revenues and does not extend to any of TeraWulf’s other business lines.
From Bitcoin Mining to AI Hosting
TeraWulf has made a shift from its original identity as a bitcoin miner toward becoming a provider of industrial-scale, high-performance computing infrastructure. While the company will maintain its existing Bitcoin mining operations, it plans not to expand that side of the business and instead focus on execution, hosting, and delivering reliable infrastructure for partners.
In the near term, mining remains a valuable source of cash flow and offers grid reliability through its flexible power usage. But in the long run, TeraWulf sees greater opportunity in transitioning megawatts to AI and HPC workloads backed by long-term, contracted revenues with partners such as Fluidstack and Google.
TeraWulf estimates that its deal with Fluidstack could bring in $6.7 billion in revenue to start, with the potential to climb as high as $16 billion if lease extensions come into play. For years, Bitcoin miners like TeraWulf have battled rising costs and tighter profit margins, but now they’re finding new life by redirecting unused mining power toward the fast-growing AI sector.
Supporting this vision, asset manager VanEck estimated that if major Bitcoin mining firms shifted just 20% of their energy capacity toward AI and HPC by 2027, the industry could gain $13.9 billion in additional annual profits over a 13-year span.
The leading cryptocurrency is currently trading at $115,592, after reaching an all-time high of $124,128 just a week ago.
