Latest news with #Fluidstack
Yahoo
an hour ago
- Business
- Yahoo
Crypto stock surges 35% after bagging a deal with Google
Crypto stock surges 35% after bagging a deal with Google originally appeared on TheStreet. Bitcoin mining and high-performance computing (HPC) firm TeraWulf (WULF) surged more than 35% on Aug. 14 after announcing a blockbuster $3.7 billion, 10-year hosting deal — with Google taking an equity stake in the company. The agreements, signed with AI cloud platform operator Fluidstack, will see TeraWulf deploy more than 200 megawatts (MW) of critical IT load at its Lake Mariner data center in Western New York. The initial contracts, valued at $3.7 billion over 10 years, include two optional five-year extensions that could bring total revenue to $8.7 billion. As part of the deal, Google (GOOGL) will backstop $1.8 billion of Fluidstack's lease obligations, providing crucial support for buildout and financing. In return, Google will receive around 41 million shares of TeraWulf, giving it roughly an 8% ownership stake. TeraWulf plans to deliver 40 MW of IT load in the first half of 2026, with the remainder coming online by the end of next announcement comes as TeraWulf pivots deeper into high-performance computing while maintaining its Bitcoin mining operations. In Q2 2025, the company self-mined 485 BTC, down from 699 BTC in the same quarter last year, but benefited from higher Bitcoin prices. Revenue in the quarter rose to $47.6 million, with adjusted EBITDA at $14.5 million. CEO Paul Prager said the company is seeing 'remarkable progress' in delivering contracted HPC capacity and attracting enterprise clients seeking low-cost, zero-carbon compute infrastructure. The firm continues to develop its hydroelectric and nuclear-powered Lake Mariner facility, which will serve as the backbone of the new HPC expansion. Shares of TeraWulf rocketed to their highest level since January, trading above $7.40 intraday, as investors cheered both the lucrative long-term contracts and Google's validation of the business. The stock has now rebounded more than 165% from its April lows and is up over 31% year-to-date. Crypto stock surges 35% after bagging a deal with Google first appeared on TheStreet on Aug 14, 2025 This story was originally reported by TheStreet on Aug 14, 2025, where it first appeared.
Yahoo
2 hours ago
- Business
- Yahoo
Why TeraWulf Stock Is Skyrocketing Today
Key Points TeraWulf inked a multiyear, multibillion-dollar agreement to provide up to 200 megawatts of compute power to an AI cloud provider. The deal will be backed by Google in exchange for a potential 8% stake in TeraWulf. 10 stocks we like better than TeraWulf › Shares of TeraWulf (NASDAQ: WULF) are flying on Thursday, up 44.1% as of 1:09 p.m. ET. The jump comes as the S&P 500 and Nasdaq Composite were down slightly. TeraWulf, a Bitcoin miner and high-performance computing (HPC) data center company, announced it inked a 10-year, $3.7 billion deal backed by Alphabet's Google. TeraWulf signs a massive deal for AI data center space Along with releasing its second-quarter earnings, TeraWulf announced a major co-location deal with Fluidstack, an artificial intelligence (AI) cloud provider that will see the company provide 200 megawatts of compute power at its data center in New York. The 10-year, $3.7 billion deal has the option to be extended twice for up to a total of $8.7 billion. Google will guarantee up to $1.8 billion if Fluidstack fails to make good on its lease obligations. In exchange, Google will be awarded warrants for 41 million shares of TeraWulf, about an 8% stake. The guarantee will allow TeraWulf to access the financing it needs to provide the 200 megawatts of compute power. TeraWulf stock is hot, but investors should exercise caution This is the latest major data center deal as big tech races to build enough capacity to meet current and projected future demands. It's hard to overstate just the scale of the efforts. Google, Amazon, Microsoft, and Meta Platforms alone are expected to spend roughly $400 billion next year and are on track to spend more than $350 billion this year. That's not total capital expenditures (capex), that is specifically data center capex. While this presents an enormous opportunity for data center providers, it also presents an enormous risk. I believe that the big tech companies are very purposefully making deals such as this one to offload the risk onto third parties. TeraWulf and other infrastructure companies like it are taking on enormous amounts of debt at very high interest rates. If there is an overbuild or AI demand sags, TeraWulf could find itself in a pretty precarious position. Should you invest $1,000 in TeraWulf right now? Before you buy stock in TeraWulf, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TeraWulf wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why TeraWulf Stock Is Skyrocketing Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
2 hours ago
- Business
- Business Insider
Google to backstop $1.8B Fluidstack lease obligation to support TerraWulf deal
TeraWulf (WULF) announced two 10-year high-performance computing, HPC, colocation agreements with Fluidstack. Under the agreements, TeraWulf will deliver more than 200 MW of critical IT load at its Lake Mariner data center campus in Western New York. To support the buildout, Google will backstop $1.8 billion of Fluidstack's lease obligations to support project-related debt financing and will receive warrants to acquire approximately 41 million shares of TeraWulf common stock, equating to an approximately 8% pro forma equity ownership stake Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Time of India
7 hours ago
- Business
- Time of India
TeraWulf stock goes wild, up 22% as Fluidstack deal now sees Google join the ride with 8% stake and $1.8B backstop
TeraWulf surges 22% after $3.7B AI hosting pact with Google — and why this deal changes the game- In a single trading session, TeraWulf Inc. (NASDAQ: WULF) went from a niche bitcoin miner to a headline-making player in the AI infrastructure race. On August 14, the New York–based firm confirmed two high-performance computing (HPC) colocation agreements with AI cloud provider Fluidstack — contracts worth $3.7 billion over the next decade, with potential to climb to $8.7 billion if optional extensions are exercised. But it's Google's quiet yet decisive move — an 8% equity stake and $1.8 billion financial backstop — that signals this isn't just another tech partnership. It's a repositioning of power in the AI hosting market. From bitcoin mining to AI infrastructure TeraWulf has long been recognized for its energy-efficient bitcoin mining operations at its Lake Mariner campus in Western New York. But the company's latest move marks a dramatic shift from cryptocurrency to high-performance computing (HPC) for AI workloads. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo The $3.7 billion agreement with Fluidstack guarantees critical IT load capacity of over 200 megawatts, with potential expansion to $8.7 billion if optional five-year extensions are exercised. For context, most traditional colocation deals rarely exceed a few hundred million dollars over a decade, making this one of the largest AI infrastructure commitments in the U.S. 'Phase one, which delivers 40 MW of AI-ready capacity, goes online in H1 2026,' TeraWulf CEO Paul Prager said. 'The full 200+ MW deployment is expected by the end of next year. This isn't just about capacity—it's about positioning ourselves as a hyperscale-ready AI hub.' Live Events What's really behind Google's 8% stake Google's warrant-based investment gives it rights to roughly 41 million TeraWulf shares, a sizeable foothold for a company better known for building its own cloud infrastructure. The tech giant will also underwrite nearly half of Fluidstack's 10-year lease obligations, a move that de-risks TeraWulf's balance sheet and ensures construction can proceed without the financing bottlenecks that have stalled competitors. Industry insiders note this arrangement is unusual. 'It's effectively a hybrid of venture backing and customer assurance,' one data-center M&A consultant told me. 'Google isn't just betting on AI demand — they're guaranteeing TeraWulf gets paid.' The Lake Mariner pivot: from bitcoin rigs to AI racks The Lake Mariner site in Western New York, long a hub for bitcoin mining, is being retooled for AI-specific workloads. The design is notable: Dual 345 kV transmission lines for redundancy. Closed-loop water cooling to handle the heat profile of dense AI clusters. Low-latency fiber routes for ultra-fast inference workloads. Phase one, offering 40 MW of liquid-cooled IT load, is expected online in the first half of 2026. By year-end, the company plans to deliver over 200 MW critical load — more than five times the capacity of many legacy U.S. data centers. The pivot mirrors a broader industry shift: mining firms with power access and permitting are morphing into AI hosting providers, where margins can be significantly higher. Financial outlook: profits, margins, and potential upside The lease agreements are structured as modified gross leases with annual escalators, expected to deliver site-level net operating income margins of roughly 85%, translating to about $315 million per year. Total project costs are projected at $8–$10 million per megawatt, competitive in the AI colocation market. Fluidstack also holds a 30-day exclusivity option for CB-5, which could add another 160 MW of IT load. If exercised, the total contract value could reach $8.7 billion over its life. For investors, this represents not just a revenue stream but a high-margin growth engine, especially as the AI cloud market continues to expand rapidly. TeraWulf's agreements are structured as modified gross leases with annual escalators , locking in site-level net operating income margins of around 85% . At full deployment, that translates to $315 million per year , with build costs in the $8–$10 million per MW range — high, but within the premium AI infrastructure bracket. Fluidstack also negotiated a 30-day exclusivity option for an additional 160 MW, giving TeraWulf a potential second expansion phase without restarting contract negotiations. For investors, that optionality is significant — it could add billions in future contracted revenue if exercised. Why the stock reaction was immediate By mid-morning on August 14, WULF shares were up roughly 22% , trading near $6.68 in pre-market sessions before settling around $5.46 intraday. The spike wasn't just about the revenue headline — it was about credibility. In a market awash with speculative AI plays, a multi-billion-dollar, Google-backed contract with clear execution timelines is rare. That's why traders rushed in: the deal addresses the two biggest investor concerns — demand visibility and capital risk. How this reshapes the AI hosting landscape For years, the AI hosting sector was dominated by hyperscalers (AWS, Microsoft, Google itself) and a few specialist colocation providers. What TeraWulf's deal demonstrates is that power-rich, infrastructure-light players can leapfrog into the high-margin AI market if they land the right anchor client . It also signals that Google is willing to play a different role in AI infrastructure — not just as a cloud service provider, but as a strategic investor and risk underwriter. That could unsettle competitors and create new acquisition targets in the energy–data nexus. The unanswered questions While the numbers are compelling, execution risk remains. Can TeraWulf deliver 200+ MW of liquid-cooled capacity in under 18 months without delays? How will the equity dilution from Google's warrants affect shareholder value? Could reliance on a single customer, Fluidstack, create long-term revenue concentration risk? These are the questions institutional investors will weigh once the initial market euphoria fades. TeraWulf's $3.7 billion deal isn't just a revenue story — it's a strategic repositioning backed by one of the world's most influential tech companies. If the company executes on time and on budget, this could be the moment it graduates from crypto miner to a core AI infrastructure player. For now, Wall Street has taken notice. Whether this rally becomes a re-rating of TeraWulf's long-term value will depend on one thing: delivery. FAQs: Q1. What is TeraWulf's $3.7B AI hosting deal with Google? It's a 10-year agreement with Fluidstack, backed by Google's $1.8B guarantee and 8% stake, to build large-scale AI hosting capacity. Q2. Why did TeraWulf's stock jump 22%? Investors reacted to guaranteed revenue, Google's backing, and the pivot to high-margin AI infrastructure.
Business Insider
09-07-2025
- Business
- Business Insider
How CoreWeave's (CRWV) GPU-Backed Debt Strategy Inspired AI Startups to Borrow Big
Startups that rent out powerful AI chips are taking a page from CoreWeave's (CRWV) playbook by borrowing large amounts of money to grow quickly, according to The Information. For example, London-based Fluidstack has secured approval to borrow over $10 billion using its supply of Nvidia (NVDA) chips as collateral. This is part of a growing trend where private lenders, who are flush with cash, are eager to finance companies that offer computing power for AI. These lenders are betting that demand will stay strong and that customer contracts will provide steady revenue. But this borrowing strategy comes with risks. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. While it helps meet the growing need for AI infrastructure, it also piles billions of dollars in debt onto young companies that aren't profitable yet. As a result, if chip prices drop faster than expected or customer growth slows, these companies may struggle to repay their loans, which often come with double-digit interest rates. Nevertheless, CoreWeave's success has helped make this kind of debt financing more acceptable in the tech world. And Fluidstack is using the funds to grow quickly as it expects to increase revenue from $65 million last year to over $400 million this year. However, not every startup is taking the same approach. Some, like Nebius (NBIS) and Vultr, are using lower-interest loans backed by cash flow rather than hardware. Others, such as TensorWave, are trying to borrow against AMD (AMD) chips, though these are less commonly used than Nvidia's. And despite pioneering these types of loans, CoreWeave itself is looking for cheaper financing. Indeed, it recently announced that it will buy data center operator Core Scientific (CORZ) in order to tap into lower-cost infrastructure loans. For investors, this rapid expansion could mean big growth, but it also adds more financial risk if the market shifts or newer chips make today's hardware less valuable. Is CRWV a Good Stock to Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRWV stock based on six Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $78.53 per share implies almost 50% downside risk.
