Remember when Bitcoin miners were the cool kids on the block? Yeah, well, that party’s been over for a while. Enter TeraWulf (WULF), a company that was basically watching its Bitcoin mining dreams get crushed by reality—until Google showed up with a briefcase full of cash and said, “Hey, want to pivot to AI instead?”
Here’s the deal: Bitcoin mining companies have been having a rough time since the “halving” event last April. Think of halving like your boss cutting your paycheck in half every four years just because… well, because that’s how Bitcoin works. Even with Bitcoin prices going up, it wasn’t enough to keep these miners profitable. The writing was on the wall—literally programmed into the blockchain.
But here’s where it gets interesting. These Bitcoin miners have something valuable: massive computing power. And guess what needs massive computing power? AI. It’s like finding out your old Nintendo can suddenly run the latest games—except way more profitable.
TeraWulf just signed a deal that would make your head spin. They inked two 10-year agreements with a company called Fluidstack to provide over 200 MW of computing power for AI workloads. The contracts are worth about $3.7 billion initially, but could balloon to $8.7 billion if they exercise extension options. That’s “buy a small country” money.
Here’s the kicker: Google is backing this play with $1.8 billion in guarantees. They’re essentially saying, “We believe in this so much, we’ll cover the rent if things go sideways.” In exchange, Google gets warrants to buy 41 million WULF shares—about an 8% stake in the company. When Google wants a piece of your action, you know you’re onto something.
The market noticed. WULF stock shot up 59.5% after the announcement. But here’s the thing—even after that massive jump, the company’s market cap of $3.41 billion is still less than the contract value. It’s like buying a house for less than the rent you’ll collect from it.
What’s really happening here is a complete image makeover. Yesterday, TeraWulf was “that struggling crypto miner.” Today, it’s “Google’s AI computing partner.” Wall Street loves a good transformation story, especially when it involves artificial intelligence and has Google’s stamp of approval.
The analyst behind this story thinks WULF could hit $12 in the coming weeks. Given that Google just essentially vouched for them with nearly $2 billion, that doesn’t seem crazy. Sometimes the best investments come from companies that successfully reinvent themselves when their original business model hits a wall.
The lesson? When life gives you obsolete Bitcoin miners, make AI lemonade. And when Google wants to help you make that lemonade, you probably want to pay attention.