Another cryptocurrency miner transforms into AI, TeraWulf (WULF.US) jumps over 26% after being acquired by Alphabet Inc. Class C.

Notice that on Thursday morning, the stock price of TeraWulf (WULF.US) surged 26%, after it was disclosed that Alphabet Inc. Class C would acquire an 8% stake in the company. This traditional cryptocurrency mining company is transitioning to provide high-performance computing and artificial intelligence infrastructure services to large-scale customers, following a similar path as CoreWeave (CRWV.US) transitioning from a mining company to a supercomputing service provider. TeraWulf has signed two ten-year agreements with Fluidstack to provide high-performance computing clusters to large cloud service providers. Under the agreements, TeraWulf will utilize its Lake Mariner data center campus in western New York to deliver over 200 megawatts of critical IT workload. The company stated that the total contract revenue is $3.7 billion, and if the two five-year renewal options are exercised, the total contract value will increase to $8.7 billion. Alphabet Inc. Class C has agreed to invest $1.8 billion to support project construction and debt financing related to the project. In exchange, Alphabet Inc. Class C will receive warrants to subscribe to approximately 41 million shares of TeraWulf common stock, equivalent to an 8% equity stake. TeraWulf CEO Paul Plagg said, "We are honored to partner with world-class capital and computational power partners to build the next generation AI infrastructure at low cost and zero-carbon energy drive. This deal confirms the status of Lake Mariner as a top-tier supercomputing campus, accelerating our strategic expansion into the high-performance computing field." "The campus is equipped with dual 345 kV transmission lines, closed-loop water cooling systems, and ultra-low latency fiber optic networks, designed for the most demanding AI workloads today," said Nazar Khan, Chief Technology Officer of TeraWulf. "Deep collaboration with Fluidstack allows us to provide fully customized, scalable solutions."