Terawulf Announces $3B Debt Raise With Google Backstop Support

(MENAFN- Crypto Breaking) Crypto mining firm TeraWulf is making significant moves to expand its infrastructure, aiming to raise approximately $3 billion in funding through Morgan Stanley, with support from tech giant Google. This strategic investment underscores a growing trend where established technology companies are investing heavily in the cryptocurrency and blockchain sectors, particularly in AI infrastructure and data centers amid rising demand and industry shortages.

• TeraWulf plans to raise $3 billion via Morgan Stanley, supported by Google, to fund data center expansion.
• Google's financial backing includes a commitment of $1.4 billion, bringing total support to $3.2 billion.
• The funding deal, potentially launching as early as October, could enhance TeraWulf's credit ratings amid ongoing negotiations.
• The AI-driven surge in demand for data centers, GPUs, and power infrastructure benefits large crypto miners with existing resources.
• TeraWulf's stock soared following recent announcements, reflecting investor confidence in the company's expansion plans.

In a strategic move emphasizing the convergence of cryptocurrency, AI, and blockchain infrastructure, TeraWulf is on the cusp of raising around $3 billion through a debt issuance scheme led by Morgan Stanley. With support from Google, the financing aims to accelerate the development of new data centers crucial for supporting the burgeoning demands of crypto mining and AI projects. Patrick Fleury, TeraWulf's finance chief, disclosed that Google's backing includes an additional $1.4 billion, boosting the total to $3.2 billion, contingent on final deal terms.

The deal could be launched as soon as October in high-yield bond or leveraged loan markets. The involvement of Google's support could potentially improve the company's credit ratings, although negotiations are ongoing, and no final decision has been made. Industry insiders note that the AI boom has caused shortages of data center space, GPU chips, and reliable electricity-a challenge large crypto mining firms are well-equipped to address, possessing critical resources like existing infrastructure and secured power supplies.

Fluidstack agreement backed by Google

In a related development, TeraWulf signed a decade-long colocation lease with AI infrastructure provider Fluidstack in August. The agreement, valued at $3.7 billion in contract revenue, was also backed by Google, which acquired a 14% stake in TeraWulf. This long-term commitment highlights Google's strategic positioning within the evolving crypto-to-AI infrastructure ecosystem.

Google's overall investment across these deals now totals $3.2 billion, indicating a substantial and long-term commitment to integrating AI with blockchain and crypto mining operations. Despite attempts to obtain further details, TeraWulf has yet to respond to inquiries.

TeraWulf stock spikes

Following the announcements, TeraWulf's shares (WULF) experienced a notable rally, rising by 12% on Thursday-reaching an intraday high of $11.72-before closing down 3.7% at $10.97 in after-hours trading, according to market data. The stock has gained momentum since August, surging 80% in the days after initial disclosures, and is up approximately 94% year-to-date, reflecting strong investor confidence in its growth prospects within the crypto and AI sectors.

TeraWulf's share price has seen significant gains since its major deals. Source: Google Finance Cipher Mining signs similar deal

Adding to the momentum, Cipher Mining announced a comparable agreement, partnering with Fluidstack and secured by Google, which acquired a 5.4% stake in the company. The deal involves providing data center capacity for Fluidstack's AI infrastructure under a colocation arrangement. Google's support includes backing $1.4 billion of obligations, reflecting ongoing institutional confidence in the crypto and AI infrastructure market.

This series of strategic investments indicates a growing industry trend where major players are leveraging blockchain, crypto mining, and AI technology to create integrated and scalable infrastructure-an essential development amid tightening crypto regulation and market shifts.

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