CleanSpark Knocked Back as TeraWulf Hits 2.5-Year High With Google’s 14% Up Stake

As the race between Bitcoin miners and AI infrastructure providers heats up, one U.S.-based company, TeraWulf (NYSE: WULF), has pulled off game-changing moves. It has gained the backing of the $2 trillion worth Google, flipping its rival CleanSpark in stock price performance.

Google Deepens Stake in TeraWulf Up to 14%

Alphabet-owned Google has taken significant measures to potentially become the largest shareholder in Bitcoin miner and data center operator TeraWulf, increasing its stake up to 14%. The tech giant has made a $3.2 billion backstop deal to support the expansion of the data center in Western New York.

Notably, this announcement came a week after Google Play Store’s crypto store wallet app policies.

The backstop here guarantees lease payments tied to TeraWulf’s 10-year agreement dated August 14 with Fluidstack, an AI cloud platform to provide over 200 MW of HPC capacity at its Lake Mariner Campus in Western New York.

In the same part of the deal, Google agreed to the $1.8 billion backstop of Fluidstack’s lease obligations in return for 8% equity stake in TeraWulf before increasing it to $3.2 billion and its pro-equity stake to 14%.

Fluistack also exercised an option to expand the Laker Mariner campus, adding a 160 MW data center building. Notably, in exchange, Google will get the warrants allowing it to purchase more than 73 million WULF shares.

This could make it one of the biggest shareholders of this Bitcoin miner company in the future. Interestingly, at the same time, WULF company has also announced its plan to raise $400M by offering convertible senior notes due after 6 years.

TeraWulf Stock Price Soars 5% Today, Knocking Out CleanSpark

Following Google’s up stake announcement, the WULF stock price has surged 5%, pushing it to a nearly 2.5-year high. On Monday, the WULF shares price jumped to a high of $10.57, and is currently at $9.38.

Notably, over the five days, the stocks have gained a 70% plus surge, pushing it ahead of CleanSpark (CLSK). Previously, in June, Metaplanet also outpaced CLSK with its Bitcoin buying strategies.

It is also important to note that the WULF stock price has nearly doubled in just a week’s span, while analysts like John Todaro anticipate it to grow to $11, citing its strong mining capacity in AI data center infrastructure.

This TeraWulf and Google collaboration reveals that the growing alignment is with Bitcoin miners and cloud providers, while they cater to the development of AI infrastructures.