TeraWulf's stock soars as Google increases stake
Shares of Bitcoin mining company TeraWulf (NASDAQ:
#WULF ) have risen over 86% in the past five days, following the company's announcement of an expanded agreement with Google.
Strategic partnership
Google will provide an additional credit guarantee of $1.4 billion to support
#TeraWulf in financing projects, raising the total guarantee amount to $3.2 billion. In return, Google will receive the right to purchase 32.5 million shares of TeraWulf, increasing the technology giant's ownership stake to 14%.
This agreement strengthens the strategic partnership between the two parties, especially in the field of AI. TeraWulf will also build a new data center, CB-5, with assistance from the AI cloud platform Fluidstack. This agreement aims to provide over 200 megawatts of capacity for AI cloud services, helping TeraWulf leverage its infrastructure more effectively, especially in the context of potentially volatile Bitcoin prices.
Market impact
Paul Prager, CEO of TeraWulf, stated that this collaboration not only enhances capacity but also deepens the strategic link with
#Google in providing next-generation AI infrastructure.
The strong growth of WULF shares indicates that the market is responding positively to the company's diversification strategy, which combines Bitcoin mining and AI service provision. This model allows cryptocurrency mining companies to optimize profits, especially when Bitcoin prices decline, by transforming infrastructure to meet the growing demands of the AI industry.