Terawulf's stock price rises 22% with a $3.7 billion AI hosting contract - Google acquires an 8% stake | CoinDesk JAPAN

• Google has covered $1.8 billion of FluidStack's lease debt and acquired an 8% stake in TerraWolf.
• Phase 1 (40MW) is scheduled to start operations in the first half of 2026 and aims for a complete installation of over 200MW by the end of 2026.

These contracts have secured approximately 3.7 billion Dollars (approximately 536.5 billion Yen, based on an exchange rate of 145 Yen per Dollar) in contract revenue. If the two 5-year extension options are exercised, this could increase to 8.7 billion Dollars (approximately 1.2615 trillion Yen).

Google will support this project by covering the fluid stack lease debt of 1.8 billion Dollars (approximately 261 billion yen), facilitating the project's debt finance, and acquiring 8% of TerraWolf's shares through approximately 41 million warrants.

These contracts will provide more than 200 megawatts (MW) of critical IT load (total capacity of about 250 MW) to the TerraWulf Lake Mariner data center located in West New York, USA. This facility is specifically designed for liquid-cooled AI workloads.

The TerraWulf Lake Mariner facility is positioned as the premier hyperscale-ready facility for demanding AI workloads, equipped with a 345 kilovolt (kV) double transmission line, closed-loop water cooling, and low-latency fiber optic connections. The deployment phase 1, which offers a capacity of 40MW, is scheduled for the first half of 2026 and is expected to be fully constructed by the end of the year.

The management teams of both companies emphasized the strategic importance of this partnership. Paul Prager, CEO, stated that this is a "decisive moment" for TerraWolf. Nazar Khan, Chief Technology Officer (CTO), highlighted the scalability and readiness of the facility. César Maklary, President of FluidStack, emphasized the joint effort towards a rapid and scalable AI infrastructure.

The contract is a modified gross lease method with an annual increase, and the facility-level net operating profit margin is expected to reach approximately 315 million Dollars (about 45.7 billion yen) per year. The total project cost is projected to be between 8 million to 10 million Dollars (approximately 1.16 billion yen to 1.45 billion yen) per MW. FluidStack also holds a 30-day exclusive option for CB-5 within the facility, and there is potential to add an additional 160 MW of IT load.

The stock price of TerraWolf rose by 22% in pre-market trading, reaching 6.68 Dollar.

| Translation and Editing: Rina Hayashi | Image: Markus Winkler/Unsplash |Original: TeraWulf Jumps 22% on $3.7B AI Hosting Deal, With Google Taking 8% Stake