Google increases stake in TeraWulf while Bitcoin shows resilience

Bitcoin has once again had a bumpy ride. Over the past years, the price has dropped no fewer than 1,063 times by at least 8% within five days, but managed to recover each time. On average, such a recovery takes just over 100 days.

At the time of writing, the coin stands at $115,381.06, with a daily increase of 0.06% and a trading volume of $64.26 billion.

Google doubles down on TeraWulf

Bitcoin miner TeraWulf jumps 5% on the stock exchange after tech giant Google increased its stake to 14%. This is not just about shares: Google is also committing a massive $3.2 billion backstop to support the growth of a large data center in West New York. The deal was struck after AI company Fluidstack decided to expand its long-term contract.

TeraWulf’s Lake Mariner data center is set to become one of the largest in the US. With a fresh capital injection of $400 million in new debt, the company plans to expand further in both Bitcoin mining and AI infrastructure. CEO Paul Prager calls Google’s support “a strong vote of confidence from a leading player in AI.”

Bitcoin mining and AI converge

TeraWulf is undergoing a transformation. Once focused primarily on Bitcoin mining, the company is now expanding into AI services. Analysts expect the data center market to reach a value of $585 billion by 2032, twice the size of what it is in 2024. According to TD Cowen, this is the highest number of hyperscale data center projects under development ever.

Needham analyst John Todaro raised his price target for TeraWulf from $6 to $11, calling the company “perfectly positioned” for the shift to AI. Still, caution remains. Google’s large equity stakes could lead to dilution of existing shareholders, despite protective structures that have been put in place.

TeraWulf’s stock has risen more than 86% in the past five days. Since its IPO in 2021, supported by celebrities such as Gwyneth Paltrow, the company has positioned itself as a sustainable alternative within crypto and tech. Whether it can live up to that promise remains a topic of debate.