TeraWulf’s $3.2 Billion AI Bet: Mining Giant Pivots to Artificial Intelligence

TeraWulf just placed the biggest bet in crypto mining history—and it's not on Bitcoin.

The $3.2 Billion AI Gambit

TeraWulf's throwing $3.2 billion at artificial intelligence infrastructure, signaling a seismic shift in how mining companies view their computational power. They're repurposing mining rigs for AI training workloads—because apparently, solving complex algorithms pays better than verifying transactions these days.

From Crypto to Compute

The move positions TeraWulf to compete directly with cloud computing giants. Their existing mining infrastructure gives them a head start in the AI arms race—proving that sometimes the smartest move in crypto isn't buying digital assets, but selling compute power to those who do.

Because nothing says 'stable investment' like betting billions on two of the most volatile sectors simultaneously. Welcome to the future—where your mining rig might be training AI models between block verifications.

TeraWulf targets institutional investors

The bitcoin mining and AI corporation said that secured notes, or a loan agreement, will be offered to qualified institutional investors. The fundraising procedure follows Rule 144A of the Securities Act in the United States.

TeraWulf will provide a safety net to the investors through WULF Compute’s subsidiaries. If the debt is not paid by 2030, investors have the right to claim TeraWulf’s assets, like equity interests and even a dedicated lockbox account in Fluidstack USA Inc.

An extra security cushion is provided by Google LLC. The tech giant will pledge warrants giving it the right to purchase TeraWulf shares as an extra security.

In mid-August, Cryptopolitan reported that Google has increased its stock share in TeraWulf from 8% to 14%. TeraWulf has also signed two contracts with Fluidstack, an AI cloud provider, for a duration of 10 years. TeraWulf’s deal with Fluidstack provides it access to over 200 megawatts of capacity at the Lake Marine data center facility. 

At the time of writing, WULF is trading at 14.93, down by 3.49% from the last trading session. The stock has a year-to-date (YTD) return of 163.25%, a one-year return of 186.54%, and a three-year return of 1,266.97%, based on data collected from Yahoo Finance.

TeraWulf has surpassed other competitors like Iris Energy (IREN) and Marathon Digital (MARA) in terms of the proposed secured notes of $3.2 billion.

Bitcoin and crypto mining companies are diversifying revenue streams by moving to AI and cloud computing. TeraWulf’s $3.2 billion offering is a huge step in this direction, showing that AI and cloud computing provide a more predictable and stable revenue stream for companies.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.