U.S. TeraWulf jumps 17% after announcing Google-backed AI expansion

TeraWulf, a Bitcoin mining company listed on the U.S. Nasdaq, announced plans to expand its artificial intelligence (AI) computing capacity, sending its stock up nearly 17% in a single day. While mining-related stocks were generally weak, TeraWulf drew market attention by ramping up cooperation on AI infrastructure supported by Google.

On the 29th (local time), Decrypt reported that TeraWulf plans to expand its collaboration with AI cloud company Fluidstack to build a data center in the Abernathy area of Texas with an IT load of 168 million watts (168 MW). TeraWulf will hold a 51% stake in the joint venture and will maintain a hosting contract for 25 years.

This project is an extension of the partnership with Fluidstack established in August as part of TeraWulf's Google-backed AI expansion strategy. Paul Prager, TeraWulf's chief executive officer (CEO), said, "Exactly the direction of evolution we announced," adding, "By signing large contracts with investment-grade partners based on superior infrastructure, we are securing a stable revenue structure."

That day, TeraWulf's stock closed at $17 per share, up 16.9% from the previous session, and fell slightly to $16.24 in after-hours trading. Other major miners declined: Riot Platforms fell 6.2%, CleanSpark 5.2%, MARA Holdings 3.5%, and IREN was down 4%.

Recent mining difficulty has nearly doubled since last year's halving, but Bitcoin's price rally has been milder than in previous cycles, eroding miners' profitability. As a result, major companies are diversifying revenue sources into building AI infrastructure and operating data centers.

Notable Bitcoin miner Hut 8 announced in August plans to develop 1.53 gigawatts (1.53 GW) of new capacity across four U.S. sites, and Google last month backed a cooperation deal between Fluidstack and Bitcoin miner Cipher, securing the right to acquire a 5.4% stake in Cipher.

Meanwhile, Bitcoin was trading at about $113,000, down 1.6% over 24 hours, and roughly 10% below this month's high of $125,000.