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Earlier this month, Fluidstack announced it signed two 10-year AI hosting agreements with TeraWulf at the Lake Mariner campus worth approximately US$3.7 billion, with Google providing US$3.2 billion of project debt support and increasing its ownership in TeraWulf to around 14%.
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This collaboration is accompanied by an 80-year ground lease at the Cayuga, NY site, enabling TeraWulf to expand its zero-carbon power capacity by up to 400 MW, with 138 MW expected to come online in 2026.
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We’ll examine how Google’s expanded financial commitment and stake may transform TeraWulf’s growth outlook and digital infrastructure role.
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To own TeraWulf, you have to believe that the shift from pure crypto mining to AI-driven digital infrastructure will drive faster, higher-quality revenue growth and improve earnings stability. The recent Fluidstack and Google partnership strongly reinforces the key near-term catalyst: sustained execution on large-scale AI hosting agreements and scalable power capacity. However, it also highlights the biggest risk, rapidly rising capital expenditure and debt, which add pressure to margins and make execution timelines for HPC build-out even more critical.
One of the most relevant announcements to this news is Google’s expanded financial support for TeraWulf’s project debt and its increased equity stake. This deepens institutional validation and credit quality for TeraWulf, directly underpinning the company’s ability to capture long-term AI-related hosting revenues, an outcome closely tied to both current catalysts and the challenge of managing higher leverage as growth accelerates.
By contrast, investors should be aware that as Google’s credit backstop tapers, TeraWulf will be more exposed to shifting counterparties and…
Read the full narrative on TeraWulf (it’s free!)
TeraWulf’s outlook anticipates $920.8 million in revenue and $157.9 million in earnings by 2028. This implies an 85.6% annual revenue growth rate and a $289.6 million increase in earnings from the current -$131.7 million.
Uncover how TeraWulf’s forecasts yield a $13.09 fair value, a 15% downside to its current price.
Ten fair value estimates from the Simply Wall St Community span US$4.84 to US$15 per share, showing marked disagreement on TeraWulf’s prospects. Execution of multi-year AI hosting contracts remains top of mind, making ongoing delivery against aggressive build-out targets a critical factor that could reshape future valuations.
