TeraWulf Stock Soars on Galactic-Scale Deal

by

Today, the stock of TeraWulf (WULF) is not merely rising-it’s ascending like a helium balloon in a vacuum chamber, up 44.1% as of 1:09 p.m. ET. This, while the S&P 500 and Nasdaq Composite are performing with all the enthusiasm of a wet sock left on a radiator. The cause? A deal so massive it makes one wonder if someone accidentally added an extra zero to the contract (which, frankly, happens more often than you’d think).

Loading widget...

A Deal That Could Power a Small Galaxy

TeraWulf, a company that mines Bitcoin and rents out high-performance computing space (essentially the Airbnb for AI algorithms), has signed a 10-year, $3.7 billion agreement with Fluidstack, an artificial intelligence cloud provider. To put this into perspective, imagine renting out your spare bedroom to a tenant who insists on installing a particle accelerator in it-and then pays you handsomely for the privilege.

The deal involves TeraWulf providing 200 megawatts of compute power at its data center in New York, which is roughly equivalent to powering a small city or charging every smartphone in existence simultaneously (don’t try this at home). The agreement also includes two optional extensions, potentially ballooning its value to $8.7 billion. If numbers were sentient beings, they would be cowering in fear right now.

Enter Alphabet‘s Google, which has agreed to guarantee up to $1.8 billion should Fluidstack fail to meet its obligations-an act of corporate chivalry that feels slightly less noble when you realize Google will receive warrants for 41 million shares of TeraWulf (about an 8% stake). It’s as though Google wandered into a medieval marketplace, offered to insure someone’s cart full of gold coins, and walked away owning part of their castle.

A Cautionary Tale Wrapped in Trillions of Bytes

This latest spectacle is just one chapter in what can only be described as humanity’s feverish dash to build enough data centers to store every cat video ever uploaded (and possibly a few backups). Giants like Google, Amazon, Microsoft, and Meta Platforms are collectively expected to spend approximately $400 billion next year alone on these digital fortresses. For context, that amount of money could fund the colonization of Mars several times over-or buy everyone on Earth a really nice sandwich.

As a value investor, I find myself torn between admiration and alarm. On one hand, TeraWulf is positioning itself as a key player in the infrastructure arms race-a race that seems increasingly likely to end either with humanity achieving technological enlightenment or accidentally summoning an eldritch horror from the depths of cyberspace. On the other hand, the sheer scale of debt being accumulated by companies like TeraWulf is enough to make even the most stoic accountant break into a cold sweat.

(For those unfamiliar with modern finance, imagine borrowing money to buy a house, except the house is made entirely of credit cards, each card comes with its own interest rate, and the foundation is built on quicksand. Now multiply that by several hundred billion dollars.)

The big tech firms appear to be outsourcing risk with the same gusto they once reserved for inventing new emojis. Should demand for AI falter-or worse, should we wake up tomorrow to discover that AI has decided it no longer needs us-TeraWulf might find itself holding the financial equivalent of a very expensive, very empty parking lot designed specifically for flying cars that never arrived.

So, dear reader, tread carefully. While today’s gains may seem dazzling, remember that markets have a way of reminding us that nothing-not even a $3.7 billion deal backed by Google-is truly immune to the whims of fate. Or, as Douglas Adams might say, “Don’t Panic,” but do bring a towel. 🧤

Read More

2025-08-14 22:10