In connection with an expansion of TeraWulf’s (NASDAQ:WULF) Lake Mariner data center campus in western New York, Google (NASDAQ:GOOG) (NASDAQ:GOOGL) agreed to provide a $1.4B backstop to support the project and will receive warrants that could boost its ownership in TeraWulf to ~14%, TeraWulf said on Monday.
TeraWulf (NASDAQ:WULF) stock climbed 6.8% in premarket trading
Fluidstack, an AI cloud platform and TeraWulf (WULF) tenant, exercised its option to expand the data center, including adding a new data center building, CB-5, which will provide an incremental 160 MW of critical IT load, with operations expected to commence in H2 2026.
Google, part of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), will provide the backstop, bringing its total backstop related to the Lake Mariner facility to $3.2B, and will receive warrants to acquire 32.5M shares of TeraWulf common stock. The warrants would add to Google’s pervious WULF warrants, which represent a pro rata share of 8% in the bitcoin miner and HPC operator.
The CB-5 lease is on the same economic terms as the initial Fluidstack leases for CB-3 and CB-4, the company said.