Alphabet Inc. becomes the largest shareholder in Tera-Wulf following investments in an artificial intelligence project and a lease agreement with Fluidstack.
New Partnership with Fluidstack
Tera-Wulf has signed a ten-year lease agreement with Fluidstack for its Lake Mariner data center in New York. Alphabet Inc. is providing $3.2 billion in guaranteed support, in exchange for the right to purchase over 73 million shares of the company.
Company Focus Change
Tera-Wulf has decided to maintain its current Bitcoin mining operations but will not expand them. Instead, the focus will shift toward artificial intelligence and high-performance computing (HPC). This decision is linked to the reduction in Bitcoin mining rewards after the halving in April 2024.
Market Reaction to the Deal
Investors reacted positively to the agreement. WULF stock initially rose by 17% to $10.57, before dropping to $9.38 by the end of the day. Despite fluctuations, WULF shares have increased by over 72% in just five days following the announcement of the deal.
The agreement between Alphabet Inc. and Tera-Wulf opens new opportunities for both companies and highlights confidence in zero-carbon projects.
