Mining company TeraWulf is preparing $3 billion in funding led by Morgan Stanley, with Google’s backstop, to expand its AI data centers.

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TeraWulf to Receive $3 Billion in Funding Backed by Google

TeraWulf, known as a bitcoin miner, is actively shifting its business towards artificial intelligence. According to Bloomberg, the company is preparing a $3 billion deal through Morgan Stanley, which will be backed by Google. Separately, Google is ready to provide another $1.4 billion in backstop, bringing the total to $3.2 billion.

Sources say the deal could start as early as October in the form of high-yield bonds or leveraged loans. Google’s support could ensure a higher rating from credit agencies.

Google and Fluidstack as partners

This is Google’s second major collaboration with TeraWulf. In August, the company signed a 10-year deal with AI infrastructure provider Fluidstack for $3.7 billion in contract revenue. As part of the deal, Google received a 14% stake in TeraWulf. Google’s total backing now exceeds $3.2 billion, making the crypto-to-AI transformation a clear-cut case.

Market and Competition

The AI boom has created a shortage of data centers and energy capacity. This is where crypto mining companies like TeraWulf have an advantage — they already have access to critical resources. TeraWulf shares are up 94% year-to-date, and have jumped 80% since the August deal.

TeraWulf isn’t the only one going this route. Cipher Mining announced a similar deal with Fluidstack, where Google will also take a stake and backstop for $1.4 billion.