Google-Backed TeraWulf Seeks $3B Debt as Miners Pivot to AI

TeraWulf plans to raise about $3 billion in debt to expand AI data center capacity. The effort runs through Morgan Stanley, according to CFO Patrick Fleury in a Bloomberg-cited report.

The structure includes Google as a financing backstop.

The transaction could come to high-yield bond or leveraged loan markets as early as October, subject to terms.

A Google backstop can influence credit ratings because it supports repayment if a counterparty falls short. Final details remain under negotiation, per the same report.

This financing follows a broader shift from bitcoin mining into high-performance computing. Large miners already control power capacity and sites, which shortens lead times for AI colocation buildouts.

Fluidstack colocation deal with Google and TeraWulf

In August, TeraWulf signed 10-year colocation agreements with Fluidstack at its Lake Mariner campus in New York.

The contracts represent about $3.7 billion in revenue across the initial terms, with options that can extend value. TeraWulf says the package covers 200+ MW of critical IT load for AI workloads.

Google agreed to backstop a large portion of Fluidstack’s obligations tied to the buildout. Public updates since then show Google’s combined support across TeraWulf deals near $3.2 billion and an equity position that reached about 14% after later warrants.

“Colocation” means the customer places its servers in a third-party data center that supplies power, cooling, and connectivity.

Here, TeraWulf provides facilities and power while Fluidstack brings AI racks and operations. The Google backstop helps lower financing risk for multi-year expansions.

Cipher Mining mirrors Google and Fluidstack structure

Cipher Mining announced a similar 10-year agreement with Fluidstack. The initial phase covers 168 MW at the Barber Lake site, with options that could push total revenue well above the base figure. Cipher retains ownership of the project.

As part of the deal, Google will backstop $1.4 billion of Fluidstack’s obligations. In exchange, Google receives warrants equal to about a 5.4% Cipher equity stake.

Company statements and market coverage confirm both the guarantee and the stake size.

These agreements show a repeatable playbook: Google as backstop, Fluidstack as AI tenant, and bitcoin miners as data center operators with land and power. The structure supports AI capacity while miners diversify beyond BTC mining.

TeraWulf stock (WULF) price action and timing details

TeraWulf shares ( WULF ) spiked after the August announcement of the Fluidstack package and Google support. Coverage recorded a one-day jump of roughly 43%, alongside revenue and capacity disclosures.

On Sep. 25, 2025, WULF hit an intraday high near $11.72 before settling around $10.97 in after-hours trading.

Quote pages show the day’s range between $10.43 and $11.78. Year-to-date performance remains higher versus early 2025 levels.

The pending Morgan Stanley financing is separate from the colocation contracts and will depend on market conditions and documentation.

TeraWulf has not issued detailed public terms beyond prior press releases and reported commentary.