logo
ENFRع
#

Latest news with #PaulPrager

TeraWulf stock goes wild, up 22% as Fluidstack deal now sees Google join the ride with 8% stake and $1.8B backstop
TeraWulf stock goes wild, up 22% as Fluidstack deal now sees Google join the ride with 8% stake and $1.8B backstop

Time of India

time7 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.

Jim Cramer Shares His Take on TeraWulf
Jim Cramer Shares His Take on TeraWulf

Yahoo

time05-08-2025

  • Business
  • Yahoo

Jim Cramer Shares His Take on TeraWulf

TeraWulf Inc. (NASDAQ:WULF) is one of the stocks that Jim Cramer spoke about. During the lightning round, a caller asked for Cramer's thoughts on the company, and he remarked: 'Well, again, I mean, I like the real, I'm a real deal guy. I got, I like the Bitcoin. I can, you know, I wish I could feel it. I like gold even more, but that's a whole 'nother kettle of gold.' Photo by Executium on Unsplash TeraWulf (NASDAQ:WULF) is a digital asset technology company that develops and operates bitcoin mining facilities and offers hosting services for third-party miners. When announcing its Q1 2025 results, Chief Executive Officer Paul Prager reiterated that the company is aiming to secure additional HPC customers with the goal of reaching between 200 and 250 megawatts of contracted HPC capacity by the end of 2026. The company reported that it remains on schedule to complete the deployment of its Core42 project within the year and has started the financing process required to move into the next stage of its HPC development. While we acknowledge the potential of WULF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store