Crypto mining firm TeraWulf is in talks to raise around $3 billion through Morgan Stanley to establish data centers, with backing from tech giant Google.
The funding round is aimed at facilitating the expansion of TeraWulf’s data centers, supported by Google, according to company CFO Patrick Fleury, who discussed this with Bloomberg on Thursday.
The deal may commence as early as October in high-yield bond or leveraged loan markets. Google has committed an additional $1.4 billion to support the debt financing, raising its total to $3.2 billion.
Google’s involvement could enhance the Morgan Stanley transaction’s rating from credit agencies. However, terms are still being negotiated, and no deal is assured, Bloomberg noted.
The AI boom has led to significant shortages in data center space, GPU chips, and reliable electricity. Large crypto mining companies are well-equipped, as they possess the necessary resources of existing data center infrastructure and secured power capacity.
Fluidstack agreement backed by Google
In August, TeraWulf announced a decade-long colocation lease agreement with Fluidstack, an AI infrastructure provider.
This contract, valued at $3.7 billion, has also been backed by Google, which acquired a 14% stake in TeraWulf.
Related: TeraWulf secures $3.7B AI hosting deal backed by Google, shares soar
Google has now pledged $3.2 billion across both agreements, reflecting strong long-term investment in the crypto-to-AI infrastructure conversion.
Cointelegraph reached out to TeraWulf for further insights but did not receive an immediate response.
TeraWulf stock spikes
TeraWulf stock (WULF) surged by 12% on Thursday, peaking at an intraday high of $11.72 before ending down 3.7% at $10.97 in after-hours trading, as reported by Google Finance.
Shares rose significantly following the initial August announcement, climbing 80% in the subsequent days. TeraWulf has experienced a strong year, with share prices up 94% since early 2025.
Cipher Mining signs similar deal
Cipher Mining announced a similar agreement on Thursday, collaborating with the same AI cloud firm Fluidstack and receiving backing from Google, which acquired a 5.4% stake in the company.
Cipher will deliver data center capacity for Fluidstack under a colocation agreement, while Google will secure an equity stake in Cipher and underwrite $1.4 billion of the obligations.
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