Terawulf has become the last cryptocurrency miner in pivotar in AI infrastructure housing, reaching a long -term agreement with fluidstack that Alphabet Google is hit, in a movement that is expected to increase significantly the company’s income execution rate.
During its shareholders’ call on Thursday, the company revealed that it has signed 10 -year placement lease agreements with Fluidstack, an AI infrastructure provider, with a value of $ 3.7 billion in contract revenue. That figure could double whether extensions of five years are exerted.
Google’s participation is produced by supporting the lease obligations of $ 1.8 billion of fluidstack with Terawulf and providing debt financing. In return, Google received arrest orders for approximately 41 million Wulf shares, representing approximately 8% of the company.
The agreement will extend the capacity of the Terawulf Data Center in New York in more than 200 megawatts of the IT load.
“Given the expected improvement in our credit profile, we have refined our financing strategy to focus on a series of capital market initiatives […] With the benefit of our new financial support from Google and our updated lease contracts, ”Terrawulf’s financial director Patrick Fleury told shareholders.
Terawulf, founded in 2021 as a Bitcoin (BTC) mining company focused on environmentally sustainable operations, has faced increasing challenges in the back environment. In the first quarter, the company reported a net loss of $ 61.4 million along with a strong drop in income.
The finance of the entire company improved in the second quarter, since Terawulf returned to profitability and registered higher income compared to the first quarter.
BTC volatile prices and growing infrastructure costs have caused Bitcoin’s mining economy to be increasingly difficult, which leads more companies to diversify in AI and high -performance computer science to stabilize income.
Related: The Jack DORSEY block is aimed at a 10 -year life cycle for Bitcoins mining platforms
Terawulf shares a wave in ai pivot news
The latest Terawulf commercial agreement caused a strong demonstration in the price of its shares on Thursday.
Wulf shares increased up to 48% intradicted to a maximum of $ 8.11, with a negotiation volume rather than quadruple the daily average, according to Yahoo financial data.
The shares for the last time around $ 7.50, 37% more in the day, which gives the company a market capitalization of almost 3 billion.
The rebound has pushed Wulf back to a positive territory during the year.
Although Terawulf is turning in AI infrastructure, it is still a cryptographic proxy stock, a state underlined by its continuous mining operations. In the second quarter, the company exceeded 485 BTC, below 699 in the same period of the previous year.
At the end of the second quarter, Terawulf had $ 90 million in cash, cash equivalents and bitcoin.
Related: Bitcoin Energy Value Metric says that the price of BTC ‘fair’ is up to $ 167K
