Bitcoin mining company TeraWulf Inc. (NASDAQ: WULF) is planning to raise approximately $3 billion to expand its data centers, with tech giant Google providing support through a structured financial arrangement. According to a September 25, 2025, report from Cointelegraph, the funding will facilitate the build-out of TeraWulf’s infrastructure, leveraging its existing facilities for AI and high-performance computing (HPC) workloads. For crypto investors, AI infrastructure analysts, and market observers searching Google TeraWulf $3 billion data center, TeraWulf AI pivot 2025, or crypto mining expansion, this development builds on Google’s August 2025 acquisition of a 14% stake in TeraWulf via a $3.7 billion AI hosting deal with Fluidstack, bringing Google’s total commitments across such partnerships to $3.2 billion. TeraWulf’s finance chief, Patrick Fleury, confirmed that credit rating firms are assessing the deal, expected to be rated between BB and CCC, typical for junk-rated debt in the sector.
This funding round, arranged through Morgan Stanley, underscores the accelerating convergence of cryptocurrency mining infrastructure and AI compute demands, as miners like TeraWulf reposition their energy-hungry facilities for high-margin AI hosting.
Deal Structure: $3 Billion Raise with Google’s Backing
The $3 billion raise is structured to support TeraWulf’s data center expansion, with Google’s involvement providing a financial backstop similar to its recent Cipher Mining partnership. While exact terms remain under discussion, the arrangement is expected to involve debt financing, with Google’s support enhancing investor confidence.
Key elements:
- Funding Purpose: Build-out of data centers for AI and HPC, leveraging TeraWulf’s existing power capacity and infrastructure.
- Google’s Role: Financial backing, potentially through guarantees or equity-linked structures, similar to its 14% stake in TeraWulf from August 2025.
- Timeline: Expected to close in the coming months, with expansions operational by late 2026.
TeraWulf’s Q2 2025 revenue jumped 34% year-over-year to $47.6 million, bolstered by stronger Bitcoin prices and expanded mining capacity, though expenses rose 59% to $22.1 million due to higher infrastructure and power costs.
| Aspect | Details | Impact |
|---|---|---|
| Raise Amount | $3 Billion | Data Center Expansion |
| Backer | Google (Support Structure) | Enhanced Credibility |
| Revenue Q2 2025 | $47.6M (Up 34% YoY) | Strong Financial Position |
Broader Context: Crypto Miners’ Pivot to AI
TeraWulf’s deal is part of a larger trend where Bitcoin miners are repurposing their energy-intensive facilities for AI workloads, capitalizing on the AI boom’s demand for data centers, GPUs, and reliable power. Google’s commitments now total $3.2 billion across TeraWulf and Cipher Mining, signaling a strategic bet on this hybrid model.
- Industry Trend: Miners like TeraWulf are well-positioned with existing infrastructure, securing power contracts that AI firms covet.
- Financial Upside: TeraWulf expects 85% net operating income margins on AI hosting, translating to $315 million annually from the deal.
- Stock Performance: Shares up 94% YTD, reflecting market optimism for the pivot.
Conclusion: Google’s Backing Accelerates TeraWulf’s AI Ambitions
TeraWulf’s $3 billion data center raise with Google’s support is a pivotal step in the miner’s transformation into an AI infrastructure powerhouse, building on its 14% Google stake from August 2025. As shares rally, it exemplifies crypto’s pivot to high-margin compute. For investors, this hybrid play shines—will it unlock $16 billion in revenue? The expansions promise. cryptotelegraph
