Google becomes the largest shareholder in Terawulf

Google’s tech giant became the largest Terawulf shareholder, holding 14% of shares, after receiving more stock in exchange for increasing its backstop with the deal in the deal between Bitcoin Miner and AI infrastructure provider fluidstack.

Terawulf is disclosed to a Call the shareholder on Thursday This is ink a 10-year-old colocation rental agreement with fluidstack. Google supports rent obligations through a financial guarantee known as a backstop and receives warrants to buy shares in return.

In a conversation with Cointelegraph, Kerri Langlais, the Chief Terawulf’s chief strategy official, said Google’s backstop said the agreement has now increased to $ 3.2 billion total in exchange for warrants who bought more than 73 million sharing in Terawulf, representing a 14% stake in the company.

Langlais added that Google’s new equity is making Terawulf’s largest shareholder, which provides a “strong validation from one of the world’s leading technology companies,” and featured the “strength of our zero-carbon infrastructure and the size of the opportunity ahead.”

Google’s backstop has kept the deal

Terrawulf Says In a statement on Monday that FluidsTack has performed a deal choice to expand to Terawulf’s Lake Mariner Data Center Campus In New York with a new data center developed, due to the start of the operation in the second half of 2026.

Langlais told Cointelegraph that the financial backstop supports long-term fluidstack hire promises to Lake Mariner, and if the AI company does not meet its financial obligations, Google will enter $ 3.2 billion.

“This is not a guarantee of Terawulf’s corporate debt, nor do we have no access to those funds,” he said.

“The backstop is tied exclusively to contracted AI and high strength income in computing and not related to our Bitcoin mining operations.”

Terawulf plans to maintain Bitcoin’s mining platform

A growing number of bitcoin (Btc) Miners vary -varying revenue streams by The transfer of their energy capacity toward AI and high-power computing (HPC) hosting services after April 2024 The stopping mining rewards Up to 3.125 Bitcoin, it hurts overall profitability.

Langlais said in the future, Terawulf plans to maintain, but not expand, it Bitcoin mining platform In Lake Mariner, with a focus on “Implementation: building, hasting, and delivery for our partners and our shareholders.”

“In the near term, mining generates cash flow and provides an important resource on the electrical grid, as flexible loading can quickly adjust to support stability and reliability.”

However, over the medium to long-term, the firm sees the “greater value of moving megawatts” on AI and HPC workloads, where long-term contracted income in blue-chip partners such as fluidstack and Google “drive growth and value creation.”

In an August 2024 report, asset manager Vaneck It is estimated that if the public has exchanged Bitcoin mining companies Moved 20% of their energy capacity to the AI and HPC by 2027, they can increase an additional annual income by $ 13.9 billion in 13 years.