TeraWulf jumps on Google’s increased 14% stake
Google increased its backstop commitment to $3.2 billion, up from the $1.8 billion announced last week.
TeraWulf jumped 13% in premarket trading this morning after announcing that AI cloud platform Fluidstack exercised its option to expand at the company’s Lake Mariner, New York, data center campus. The bitcoin mining company also announced that Google increased its initial backstop commitment to $3.2 billion, up from the $1.8 billion announced last week.
Google’s stake in the company increased to 14% from 8% last week after it acquired an additional 32.5 million shares of TeraWulf via warrants.
The stock is up 84% in the past week and 98% in the past month.
The deal also represents $8.7 billion in contracted revenue, which could bring total contracted revenue to $16 billion with lease extensions.
“This expansion not only scales our contracted platform but reinforces TeraWulf’s leadership in the AI and HPC infrastructure ecosystem, delivering globally competitive, sustainable, and scalable compute solutions,” TeraWulf CEO Paul Prager said in a release.
TeraWulf also announced on Monday morning a $400 million private offering of aggregate principal amount of convertible senior notes due 2031 to “qualified institutional buyers.”
“The company intends to use the net proceeds from the offering to pay the cost of the capped call transactions with the remaining net proceeds used to finance a portion of the company’s data center expansion and for general corporate purposes,” the press release stated.
