TeraWulf shares jump on Google-backed expansion of New York data centre

Shares of TeraWulf rose about 13% in premarket trading on Monday after the data centre operator announced a major expansion at its Lake Mariner campus in Western New York, backed by a new round of funding from Alphabet’s Google.

The development builds on a series of recent agreements with cloud platform Fluidstack and underscores the company’s growing role in powering AI infrastructure.

TeraWulf said Google will provide an additional $1.4 billion backstop to support project-related debt financing at Lake Mariner.

In exchange, Google will receive warrants to purchase 32.5 million shares of TeraWulf, lifting its total investment to about $3.2 billion and increasing its pro forma equity stake to roughly 14%, up from about 8% previously.

The commitment marks the latest step in Google’s growing involvement in the company.

Earlier this month, TeraWulf disclosed that Google would backstop $1.8 billion of lease obligations tied to its agreements with Fluidstack.

Fluidstack expansion adds 160 MW capacity

The expansion will add a new purpose-built building, CB-5, providing an incremental 160 megawatts of critical IT load.

Operations are expected to begin in the second half of 2026.

With this addition, TeraWulf’s contracted capacity with Fluidstack at the campus rises to about 360 MW, compared with more than 200 MW previously agreed.

The company said discussions are ongoing regarding further expansion opportunities.

“This expansion underscores the unmatched scale and capabilities of the Lake Mariner campus,” said Paul Prager, TeraWulf’s chief executive officer.

“By adding CB-5, we are not only increasing our contracted capacity with Fluidstack but also further deepening our strategic alignment with Google as a critical financial partner in delivering the next generation of AI infrastructure.”

The agreements with Fluidstack already represent $6.7 billion in contracted revenue for TeraWulf, with the potential to reach $16 billion if lease extensions are exercised.

$400 million convertible bond offering

Alongside the expansion, TeraWulf announced a private offering of $400 million aggregate principal amount of convertible senior notes due 2031.

The deal includes an option for initial purchasers to acquire up to an additional $60 million within 13 days.

Proceeds will be used to fund capped call transactions designed to limit shareholder dilution and to partially finance ongoing data centre projects, with the remainder allocated for general corporate purposes.

The notes will be senior unsecured obligations, bearing semi-annual interest, and convertible into cash, stock, or a combination, subject to stockholder approval for additional shares.

Investor sentiment strengthens; analysts bullish on WULF

The developments follow a volatile week for TeraWulf shares.

On Thursday, the stock surged nearly 60% to close at $8.71 after the company announced two 10-year colocation agreements with Fluidstack and Google’s initial $1.8 billion support package.

As of Friday’s close, TeraWulf had a market capitalisation of about $3.5 billion, according to LSEG data.

Analysts have responded positively to the announcements.

Needham on Monday raised its price target on the stock by $5 to $11, while LSEG data shows 11 of 12 analysts now rate TeraWulf as a “buy” or “strong buy.”

The median price target has risen to $11.50, up from $7 a month ago.