Paul Johnson Google’s stake in bitcoin miner TeraWulf grows to 14% as the company plans a $400 million fundraising via convertible notes to expand its data-center and AI infrastructure footprint.
TeraWulf’s $400 Million Convertible Note Plan
TeraWulf, currently the fifth-largest bitcoin miner in the U.S. by market value, is seeking to raise $400 million through privately placed convertible senior notes due 2031. The company aims to use the proceeds to fund capped-call hedges, expand its data-center operations, and enhance flexibility in managing debt and equity conversions.
The convertible notes, offering semiannual interest payments starting March 2026, will mature by September 2031. According to the miner, it retains the option to settle conversions in cash, stock, or a combination of both subject to shareholder approval to expand authorized shares.
This fundraising initiative comes at a critical juncture as Google’s stake in bitcoin miner TeraWulf deepens through its connection with Fluidstack, an AI cloud infrastructure company that has become one of TeraWulf’s most strategic partners.
Google’s Stake Rises Through Fluidstack’s Expansion
Fluidstack, which leases power capacity at TeraWulf’s Lake Mariner campus in New York, recently expanded its lease by 160 megawatts raising the total contracted IT load to roughly 360 MW. This expansion not only strengthens Fluidstack’s presence but also increases Google’s financial exposure and stake in the operation.
Through this amendment, Google’s financing backstop has surged to $3.2 billion, boosting its pro forma equity stake in bitcoin miner TeraWulf to 14%. The tech giant’s involvement, via backstopping Fluidstack’s lease commitments and securing additional warrants, signals growing confidence in TeraWulf’s hybrid strategy that merges crypto mining with high-performance data infrastructure.
TeraWulf’s upcoming CB-5 data center, purpose-built for AI workloads, is slated to begin operations in the second half of 2026. This facility is expected to play a key role in supporting both HPC and blockchain-driven computations.
A Strategic Pivot Beyond Bitcoin Mining
While TeraWulf has made its name in the bitcoin mining space, the company is rapidly diversifying toward HPC and AI infrastructure services. Its collaboration with Fluidstack, which includes two decade-long colocation deals, exemplifies this strategic shift.
By hosting Fluidstack’s AI workloads, TeraWulf effectively positions itself at the intersection of energy-intensive bitcoin mining and AI data processing a sector witnessing explosive growth as cloud providers scramble for scalable, renewable-powered compute resources.
This hybrid business model has already started reflecting in financial metrics. In the second quarter of 2025, TeraWulf’s revenue climbed to $47.6 million, up from $34.4 million in the first quarter. Despite this growth, the miner reported a net loss exceeding $79 million for the first half of 2025, largely due to hefty infrastructure investments tied to its HPC transition.
Market Reacts Positively to Google’s Increased Stake
Following the announcement of Google’s larger stake in bitcoin miner TeraWulf, the company’s shares surged over 11%, trading around $10.03. The market appears to be pricing in optimism over TeraWulf’s pivot toward AI-driven computing and Google’s backing two developments that add significant credibility to the miner’s long-term vision.
This positive investor sentiment suggests growing recognition that traditional bitcoin mining firms are evolving into AI-powered compute providers, leveraging their access to cheap, renewable energy and existing data-center infrastructure.
Google and TeraWulf: Building the Future of Digital Compute
The growing Google stake in bitcoin miner TeraWulf represents more than just financial support it’s a strategic partnership shaping the next generation of compute infrastructure. Google’s backing enhances TeraWulf’s credibility in the AI and Web3 ecosystem, positioning it as a critical node for high-performance, energy-efficient computation.
For Google, this collaboration offers a gateway into the rapidly expanding decentralized compute economy, aligning with its broader strategy to power generative AI and blockchain workloads with sustainable, large-scale infrastructure.
As TeraWulf continues to blur the lines between bitcoin mining and AI data processing, its model could become the blueprint for the next evolution of digital infrastructure where blockchain energy efficiency meets AI’s insatiable demand for compute power.
Final Takeaway
The expanded Google stake in bitcoin miner TeraWulf marks a defining moment in the convergence of crypto mining, AI, and high-performance computing. As TeraWulf raises $400 million to accelerate its dual expansion into blockchain and AI infrastructure, it’s clear that the lines separating these once-distinct industries are fading fast.
With Google’s strategic involvement and the growing synergy between Fluidstack’s AI demands and TeraWulf’s mining expertise, the future of compute may well be powered by partnerships like this where big tech and bitcoin miners align to fuel the next digital frontier.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
