Google enters TeraWulf: $3.2 billion to convert Bitcoin mining into AI data centers

Google becomes the main shareholder of TeraWulf (WULF), supporting a plan of 3.2 billion dollars to convert part of the mining sites into data centers for artificial intelligence (AI). The operation, highlighted in documents filed with the SEC and reported by specialized publications, includes the issuance of options/warrants for over 73 million shares that will give Google, on a diluted basis, a stake close to 8% of the company’s capital. The announcement is dated August 14, 2025, as indicated by the filings and journalistic coverage.

According to the data collected from the SEC filings of August 14, 2025, and market notes, the proposed structure combines components of direct equity and dilutive instruments (warrants) with financing lines for infrastructural development. 

Industry analysts note that the conversion of mining facilities into HPC data centers requires significant interventions on the electrical network, cooling, and local permits, with operational timelines typically ranging from a few months up to 12–24 months depending on the site and authorizations.

Markets in motion: rally and profit-taking

The stock WULF has shown marked volatility in the sessions following the announcement, with fluctuations that, according to various sources, have ranged between 20% and 55%. An interesting aspect is that the 12-month high reached approximately $10.71 per share, only to then be affected by profit-taking that trimmed part of the rally.

What the agreement provides: numbers and structure

• Total investment of $3.2 billion aimed at accelerating the conversion towards AI infrastructures and strengthening the already operational campuses.
• Equity participation: issuance of options/warrants on over 73 million shares, for a potential stake close to 8% of the share capital.
• Composition: the operation includes an equity component (shares and warrants) along with financial support for infrastructural development; further details will be clarified in the official filings and the expected 8‑K.
• Key asset: the Lake Mariner campus is identified as the hub for the conversion towards HPC infrastructure for AI.

Why it matters to Google: from computing power to scale

The bet is not about the price of Bitcoin, but rather TeraWulf’s ability to offer competitive energy, spaces, and infrastructure ready for AI workloads. In this context, where artificial intelligence models require increasing computation, having scalable platforms becomes a strategic advantage. International reports on data center consumption and growth highlight how the demand for HPC capacity for AI is in structural growth, while major cloud providers and hyperscalers constantly update AI infrastructure offerings to support increasingly large models on Google Cloud — AI Infrastructure.

From mining to AI data centers: what changes in the field

TeraWulf aims to convert parts of its facilities into high-performance computing nodes for AI clients, complementing or, where appropriate, replacing the mining activity. Hosting contracts and multi-year lease agreements with computing operators could help stabilize revenues, supporting investments in energy, cooling, and network infrastructure. It should be noted that operational grounding remains central and that timing will depend on local permits and availability of electrical upgrades.

Expected operational milestones

• Continuation of the reconversion of the Lake Mariner campus and enhancement of the electrical infrastructure.
• Installation of HPC racks dedicated to AI workloads.
• Publication of the agreement details in the coming quarters through official announcements and SEC filings.

Financial Impact and Evaluations

According to analysts, the investment acts as a financial parachute that mitigates the risk associated with AI projects. The estimates, reported by platforms like TipRanks, indicate scenarios with target prices from $11 (base scenario) to over $14 in the most optimistic scenario, varying depending on the pace of conversion and adoption of AI services.

Context TeraWulf: profile and capacity

• Hybrid model: transition from mining to significant investments in capex to offer data center services on multi-year contracts.
• Main assets: strategic sites in the United States, including the Lake Mariner campus (NY), candidate for conversion into AI infrastructure.
• Energy: the availability of competitive energy supply remains a key factor in supporting the growing AI demand.
• Financial data: metrics such as revenue, capex, and capacity (in MW) will be crucial to assess the sustainability of the strategy; refer to upcoming filings for updated values.

Strategies and risks for those following the stock

• Gradual approach: the plan is marked by verifiable milestones (signed contracts, installed power, start of clusters).
• Diversification: the strategy balances exposure between data center operators, cloud, and HPC service providers.
• Cash monitoring: attention to capex, energy OPEX, and debt structure.
• Risks: project execution, dependence on strategic partners, and crypto market volatility remain critical variables. An interesting aspect is the sensitivity to deployment timing.

The reactions: institutional and retail

The presence of Google has been interpreted as a strong industrial validation of the pivot towards AI, with some upgrades from brokers and growing interest from the retail segment. The volatility of the stock continues to reflect investors’ expectations, amplifying both potential bull gains and possible bear drawdowns if the forecasts are not met.

Key questions to follow

• Timelines for the reconversion and the actual amount of MW allocated to AI in the coming quarters.
• Quality of clients AI, with attention to the duration of contracts, clauses indexed to energy costs, and usage levels.
• Final composition of the 3.2 billion $ between equity, warrant, and any other forms of financing.
• Impact on margins resulting from the transition from traditional mining to data center services.

Sources, documents, and updates

• https://www.sec.gov/edgar/search/#/entityName=terawulf — TeraWulf filings and related documents (including the filing of August 14, 2025).
• CoinCentral — focus on the agreement and strategic dynamics.
• Traders Union — analysis of market reactions.
• TipRanks — estimates and range of target price forecasts.
• Google Cloud — AI Infrastructure — technical documentation and infrastructural offerings for AI workloads.