TeraWulf has drawn fresh market attention after its latest high-performance computing hosting agreement with Fluidstack was supported by Google. Under the disclosed structure, Google is providing up to $3.2 billion in backstop support tied to lease obligations and could end up owning about 14% of TeraWulf through warrants if fully exercised. The arrangement strengthens financing visibility for the project and reinforces the idea that hyperscalers are increasingly interested in the power access and data center infrastructure controlled by Bitcoin miners.
Contracted capacity rises to 360 MW
TeraWulf first announced the 10-year HPC hosting agreement with Fluidstack on August 14, 2025. The deal initially covered more than 200 MW of infrastructure capacity at the company’s Lake Mariner site in New York and was expected to generate $3.7 billion in contracted revenue over the original term, with upside to $8.7 billion if extensions were exercised.
On August 18, Fluidstack expanded the arrangement by exercising an option to lease a third building, CB-5, adding another 160 MW. That lifted total contracted capacity at Lake Mariner to about 360 MW. With the expansion, contracted revenue increased to $6.7 billion, while the long-term upside could reach $16 billion if lease extensions are triggered. The colocation model leaves hardware ownership with the client, while TeraWulf supplies power, purpose-built data center space, and supporting infrastructure. Critical IT load is expected to begin coming online by mid-2026.
Google’s role adds both credit support and strategic weight
The most notable feature of the deal is Google’s participation. Through its relationship with Fluidstack, Google initially guaranteed $1.8 billion of lease obligations tied to the first phase of the 10-year contract. After the additional 160 MW option was exercised, total support rose to $3.2 billion. The report also notes that Google’s backing includes early termination protections covering the first six years, reducing revenue risk for TeraWulf and making project financing easier to secure.
In return, Google will receive warrants for approximately 73.5 million shares of TeraWulf. If fully exercised, that would translate into an ownership stake of roughly 14%. While the warrants do not represent immediate dilution, they signal long-term economic alignment and provide a powerful endorsement of TeraWulf’s infrastructure platform in the eyes of lenders, investors, and potential future customers.
Asset-light buildout supported by convertibles
TeraWulf is framing the expansion around an asset-light model. Because customers bring their own GPUs and compute clusters, the company avoids the large upfront burden of owning rapidly depreciating computing hardware. Prepaid hosting fees also help support construction-phase cash flow.
To accelerate the Lake Mariner buildout, TeraWulf announced a convertible notes offering that was increased from $400 million to $850 million. According to the report, about $743.2 million of proceeds will primarily fund the CB-5 buildout and related HPC infrastructure. The notes carry a 1.00% interest rate, offering a lower-cost funding route than more traditional debt while preserving flexibility during a rapid expansion cycle.
A model other miners may try to replicate
TeraWulf had already entered the HPC market in 2024 through a 72.5 MW partnership with Core42 at the same site. Combined with the Fluidstack commitments, the company now has more than 420 MW of committed HPC infrastructure, above its current Bitcoin mining operation of about 250 MW. That suggests a broader transition from a pure-play miner toward a hybrid infrastructure provider serving both mining and HPC demand.
The broader significance of the deal lies in the template it offers. Miners with access to large-scale power, available land, and data center assets may increasingly try to secure long-term HPC customers first and then use those contracts to unlock financing. Google’s involvement—through both lease support and equity-linked warrants—stands out as a strong signal that major technology companies are paying closer attention to the infrastructure value embedded in the mining sector.