In a significant move, cryptocurrency mining firm TeraWulf is aiming to secure approximately $3 billion in debt financing through Morgan Stanley to support the construction of new data centers. This ambitious funding initiative is bolstered by a substantial commitment from tech powerhouse Google, as confirmed by TeraWulf’s Chief Financial Officer, Patrick Fleury, during a recent interview with Bloomberg.
The funding effort is expected to enter the market as early as October, potentially utilizing high-yield bonds or leveraged loans. Google’s support includes a backstop of around $1.4 billion, increasing the overall financial arrangement to $3.2 billion. This backing could enhance the credit rating assessment of the Morgan Stanley transaction, although the specific terms of the deal are still being finalized, leaving open the possibility that it may not come to fruition.
The current boom in artificial intelligence has resulted in heightened demand for data center resources, including GPU chips and steady electricity supplies. TeraWulf, along with its larger competitors in the crypto mining sector, is strategically positioned to meet this demand, thanks to its existing infrastructure and reliable power resources.
In August, TeraWulf took a notable step in this direction by signing a ten-year colocation lease agreement with Fluidstack, a company specializing in AI infrastructure. This deal, valued at $3.7 billion in contract revenue, received a similar backing from Google, which also acquired a 14% equity stake in TeraWulf. This robust partnership underscores Google’s ongoing commitment to supporting the conversion of crypto capabilities into AI infrastructure.
Following the announcement of these strategic alliances, TeraWulf’s stock experienced a significant spike, with shares rising 12% on Thursday alone to reach an intraday high of $11.72 before settling at $10.97 after hours—a 3.7% dip. Since the beginning of 2025, TeraWulf’s stock price has climbed an impressive 94%, reflecting strong investor confidence after the announcements in August, which saw shares surge by 80% shortly after the news broke.
In a related development, Cipher Mining, another crypto enterprise, unveiled a similar partnership with Fluidstack and received backing from Google as well—this time acquiring a 5.4% stake in the company. This arrangement includes a colocation agreement where Cipher will provide data center capacity for Fluidstack, alongside a commitment from Google to underwrite $1.4 billion of Cipher’s obligations.
The investment activities from Google across both TeraWulf and Cipher Mining illustrate the increasing intersection of crypto and AI technologies, highlighting a growing trend that reflects both companies’ positioning to capitalize on the evolving demands of digital sectors.
Cointelegraph reached out to TeraWulf for additional comments but had not received a response at the time of publication.
