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Crypto mining company TeraWulf is preparing to raise approximately $3 billion in debt financing through Morgan Stanley, with Google providing a crucial backstop, according to a report published Thursday by Bloomberg.
Patrick Fleury, chief financial officer of the crypto mining company, said the planned funding will support the build-out of large-scale data centers. The deal, which could launch as early as October, may take the form of high-yield bonds or leveraged loans.
Google’s commitment reportedly includes $1.4 billion to support the debt financing, lifting its total backing of the crypto mining company to $3.2 billion. Analysts suggest Google’s role could help secure stronger credit ratings for the transaction, though the terms remain under negotiation and the launch is not yet guaranteed.
“The AI boom has created severe shortages of data center space, GPU chips, and reliable electricity access, and large crypto mining companies are well-positioned because they already possess the two scarcest resources, existing data center infrastructure and secured power capacity,” — Bloomberg report.
The planned funding round builds on a long-term partnership between the crypto mining company and Google. In August, TeraWulf signed a ten-year colocation lease agreement with AI infrastructure provider Fluidstack, valued at $3.7 billion in contract revenue. That deal was also backed by Google, which acquired a 14% equity stake in TeraWulf.
With the latest financing, Google’s commitments to the crypto mining company now total $3.2 billion across multiple agreements, highlighting its strategy to support firms transitioning from cryptocurrency mining to AI-driven infrastructure.
“Google’s backstop commitment to support the debt financing is an additional $1.4 billion, bringing its total to $3.2 billion,” — Patrick Fleury, CFO, TeraWulf, in remarks to Bloomberg.
News of the funding talks sent shares of the crypto mining company higher on Thursday before retreating later in the day. TeraWulf stock (WULF) rose 12% to an intraday high of $11.72, before closing down 3.7% at $10.97 in after-hours trading, according to Google Finance.
The company’s shares had already experienced a surge earlier this year. Following the announcement of its initial Fluidstack agreement in August, the crypto mining company’s stock jumped 80% in the days that followed. Overall, TeraWulf shares are up 94% since the beginning of 2025, underscoring growing investor confidence in its AI pivot.
TeraWulf is not alone in shifting its business model. On Thursday, Cipher Mining announced a similar deal with Fluidstack, also backed by Google. The arrangement will see Cipher provide colocation data center capacity, while Google takes a 5.4% stake in the company and backstops $1.4 billion of its financing obligations.
The twin announcements suggest that Google is deepening its involvement with multiple crypto mining companies as they repurpose their infrastructure for AI. Analysts note that this trend could reshape the traditional mining sector, with data center hosting for AI workloads becoming a significant new revenue stream.
