TeraWulf Stock Surges 22% After $9.5B Google-Backed AI Compute Deal With Fluidstack

Core Insights - TeraWulf's shares increased by 22% following the announcement of a $9.5 billion AI infrastructure joint venture with Fluidstack, marking a significant move into high-performance computing [1] Group 1: Joint Venture Details - The 25-year lease agreement is valued at approximately $9.5 billion in contracted revenue, involving the construction of 168 megawatts (MW) of data center capacity at TeraWulf's Abernathy, Texas campus, aimed at supporting AI workloads [2] - Google is backing the deal by supporting $1.3 billion of Fluidstack's long-term lease obligations, enhancing lender confidence for project financing [2] - TeraWulf will maintain a 51% stake in the joint venture, securing exclusive rights to co-develop Fluidstack's next 168 MW AI data center project under similar terms [3] Group 2: Capacity and Future Plans - With the new agreements, TeraWulf now has a total of 510 MW of computing capacity under contract and aims to add between 250 to 500 MW annually in the future [3] Group 3: Financial Projections - For the third quarter of 2025, TeraWulf expects revenue to be between $48 million and $52 million, reflecting an approximate 84% increase from the same period last year [4] - Adjusted EBITDA is projected to be between $15 million and $19 million, nearly tripling last year's results [4]