TeraWulf's stock rose by 5% following Google's announcement of increasing its stake in the bitcoin mining company to 14%. Google is providing a substantial $3.2 billion backstop to support TeraWulf's expansion of its Lake Mariner data center in New York, which is set to become one of the largest in the U.S. This investment reflects a strategic shift as TeraWulf transitions from bitcoin mining to providing AI infrastructure, aligning with broader industry trends towards AI and data center growth.

The deal includes warrants for Google to purchase over 73 million shares of TeraWulf, which analysts view as a significant vote of confidence in the company's future. TeraWulf's CEO emphasized the importance of this partnership, noting that it positions the company well within the rapidly growing data center market, projected to reach $585 billion by 2032. Analysts have raised their price targets for TeraWulf, indicating strong market optimism despite concerns about potential dilution from Google's large stake.