Google has increased its stake in TeraWulf, a Bitcoin mining and data center company, to 14% from 8%, becoming its largest shareholder.
This follows a $3.2 billion backstop commitment, including an additional $1.4 billion, to support a 10-year colocation agreement with AI cloud provider Fluidstack at TeraWulf’s Lake Mariner facility in New York. The deal involves warrants for Google to purchase 32.5 million TeraWulf shares and expands the facility’s capacity to over 360 MW for AI and high-performance computing (HPC) by 2026.
TeraWulf’s stock surged 12-13% on the news, with a 90% rise over the past week, reflecting investor confidence in its pivot toward AI infrastructure alongside Bitcoin mining. The partnership aligns with Google’s AI ambitions and TeraWulf’s shift to stable, long-term AI/HPC revenue, potentially generating $6.7-$16 billion.
Google’s involvement, as a tech giant, lends substantial credibility to the cryptocurrency mining sector. This move signals to investors that blockchain infrastructure is a viable and strategic investment, potentially attracting more institutional capital to mining companies and related SPACs.
The partnership validates TeraWulf’s zero-carbon infrastructure and its pivot toward AI and high-performance computing (HPC), suggesting that sustainable and diversified mining operations are becoming more appealing to major corporations.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
Shift Toward AI and HPC Integration
TeraWulf’s strategic pivot from pure Bitcoin mining to a hybrid model incorporating AI and HPC workloads reflects a broader industry trend. The April 2024 Bitcoin halving reduced mining rewards to 3.125 BTC per block, squeezing profitability and pushing miners to diversify revenue streams.
Google’s $3.2 billion backstop for TeraWulf’s colocation agreement with Fluidstack underscores the growing convergence of blockchain mining and AI infrastructure. This could encourage SPACs to target companies that combine crypto mining with AI/HPC capabilities, as these hybrid models offer more stable cash flows and reduced exposure to crypto market volatility.
For SPACs, this suggests that targeting or merging with mining companies that secure high-profile tech partnerships could lead to significant valuation uplifts and attract retail and institutional investors. TeraWulf’s emphasis on zero-carbon energy aligns with Google’s sustainability goals, making it an attractive partner.
This focus on renewable energy addresses a key criticism of Bitcoin mining—its environmental impact. SPACs targeting blockchain mining companies with sustainable practices may gain a competitive edge, as environmental concerns increasingly influence investor decisions and regulatory frameworks.
Google’s deepened involvement could catalyze consolidation in the mining sector. As tech giants like Google secure stakes in leading miners, smaller or less diversified companies may struggle to compete. SPACs could play a role in this consolidation by merging with or acquiring smaller mining firms to scale operations or pivot toward AI/HPC.
Impact on Blockchain Mining SPACs
SPACs focusing on blockchain mining will likely prioritize companies that integrate AI and HPC, as TeraWulf has done. The dual revenue stream from crypto mining and AI infrastructure reduces risk and enhances long-term profitability, making such companies more appealing merger targets.
For example, firms like Core Scientific and Iris Energy, which have also pivoted to AI, could be prime candidates for SPACs looking to capitalize on this trend. Google’s entry into the sector may intensify competition for high-quality mining companies with scalable infrastructure. SPACs will need to act swiftly to identify and merge with firms that have strong energy-efficient operations and potential for AI/HPC integration.
The TeraWulf deal demonstrates that blockchain mining companies with strong partnerships can achieve significant stock price gains and institutional backing. This could boost investor sentiment toward SPACs in the sector, particularly those targeting companies with similar profiles—sustainable energy, scalable infrastructure, and tech partnerships.
The success of TeraWulf’s partnership may inspire new SPACs to enter the blockchain mining and digital infrastructure space, focusing on companies that bridge crypto and AI. These SPACs could target firms with existing data center infrastructure, low-cost renewable energy access, or partnerships with tech or AI companies, mirroring TeraWulf’s model.
The projected $13.9 billion in additional profits for miners shifting to AI/HPC by 2027, as estimated by VanEck, further supports the potential for SPAC-driven growth in this hybrid sector. Google’s increased stake in TeraWulf signals a transformative moment for blockchain mining, emphasizing the integration of AI and HPC infrastructure and sustainable energy practices.
For blockchain mining SPACs, this development highlights the importance of targeting companies with diversified revenue models, strong institutional partnerships, and environmentally conscious operations. While it enhances the sector’s legitimacy and investor appeal, it also introduces challenges like higher valuations, regulatory scrutiny, and competition for quality targets.