Crypto mining company TeraWulf is on the brink of securing approximately $3 billion in funding, collaborating with Morgan Stanley. This substantial investment aims to support the development of data centers, backed by technology giant Google. Patrick Fleury, TeraWulf’s finance chief, revealed to Bloomberg that the funding round is structured with Google’s support, indicating a robust financial foundation for the data center initiative.
The deal is poised to enter the high-yield bond or leveraged loan markets as early as October. Google’s additional commitment to debt financing, amounting to $1.4 billion, elevates its total backing for TeraWulf to $3.2 billion. The backing from Google is expected to enhance the rating of the Morgan Stanley transaction from credit rating agencies, though the terms are still under negotiation and uncertainty looms over whether the deal will actually launch, according to Bloomberg reports.
With the current AI boom causing significant shortages in data center space, GPU chips, and reliable electricity, large crypto mining firms like TeraWulf are strategically positioned. They already control the most limited resources crucial for growth: established data center infrastructure and secured power capacity.
In a related development, TeraWulf previously announced in August a ten-year colocation lease agreement with Fluidstack, an AI infrastructure provider. This agreement, valued at $3.7 billion in contract revenue, was also backed by Google, which now holds a 14% equity stake in TeraWulf. The tech giant’s total commitment across both deals showcases its long-term investment strategy, emphasizing the conversion of crypto infrastructure to support AI demands.
Following these announcements, TeraWulf stock experienced a notable surge, climbing 12% on one particular Thursday, reaching an intraday high of $11.72 before settling at $10.97, a 3.7% decrease during after-hours trading. The company’s shares had surged an impressive 80% shortly after the previous deal announcement in August, contributing to a year-to-date increase of 94% in share prices since the beginning of 2025.
In a notable parallel development within the industry, Cipher Mining also disclosed a similar agreement on the same day. Partnering with Fluidstack, backed again by Google—this time taking a 5.4% equity stake—Cipher will provide data-center capacity under a colocation arrangement. Google’s involvement extends to backing $1.4 billion of Cipher Mining’s obligations.
With significant moves occurring in the crypto space, both TeraWulf and Cipher Mining appear to be strategically aligning themselves to capitalize on rapid advancements in AI infrastructure and the growing demand for crypto mining capabilities.
