Bitcoin miner pivots toward AI infrastructure with Morgan Stanley financing
Bitcoin mining firm TeraWulf is preparing to raise approximately $3 billion to expand its data center operations, with support from Google and financing led by Morgan Stanley. The move highlights how traditional crypto miners are repositioning themselves to capture opportunities in the rapidly expanding artificial intelligence sector.
Google-backed financing plan
According to company finance chief Patrick Fleury, the fundraising round could launch as early as October in the high-yield bond or leveraged loan markets. Google has committed to backstop $1.4 billion of the debt, which would bring total support for the deal to $3.2 billion.
TeraWulf stock (WULF) reacted sharply to the funding news, spiking 12% intraday to $11.72 before retreating to $10.97 in after-hours trading. Shares have climbed 94% since the start of 2025, supported by optimism around the company’s AI strategy.
Analysts note that Google’s involvement could give the transaction a stronger credit rating. However, the structure is still under negotiation, and there is no guarantee that the deal will proceed as planned.
An industry observer explained, “The AI boom has created an unprecedented demand for data center space, chips, and reliable power. Crypto miners like TeraWulf already hold two of the rarest assets — infrastructure and secured electricity — which positions them to pivot faster than most.”
Expanding AI partnerships
This effort follows TeraWulf’s $3.7 billion colocation agreement with AI infrastructure provider Fluidstack, announced in August. That 10-year deal, also backstopped by Google, is expected to generate significant recurring revenue for the miner. Google took a 14% stake in TeraWulf as part of the partnership, signaling long-term confidence in the firm’s shift from crypto mining to AI hosting.
Google’s total commitment across both initiatives now stands at $3.2 billion, cementing its role in shaping next-generation computing infrastructure.
Competitor Cipher Mining also announced a nearly identical partnership with Fluidstack, with Google taking a 5.4% stake and agreeing to backstop $1.4 billion in obligations.
Experts believe these deals highlight a strategic shift from Bitcoin mining toward AI-powered infrastructure, as miners repurpose their data centers to meet rising demand.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.