A Bitcoin miner just turned into an AI landlord—almost overnight. TeraWulf’s stock ripped up to 59% intraday after revealing a decade-long AI hosting pact that shifts the company from hash rate to high-performance compute. With Google backing $1.8B of lease commitments tied to the deal and receiving warrants for about 41M shares (~8% stake), traders now have a fresh template for how mining power can be repriced as data-center power. Here’s what’s changing—and how to trade it.

What Happened

TeraWulf signed two 10-year contracts with AI platform Fluidstack to deliver more than 200 MW of compute capacity from its Lake Mariner site in New York. The agreements guarantee roughly $3.7B in revenue, with expansion options that could lift the total to around $8.7B. The first 40 MW are slated to go live in early 2026, with full capacity by year-end. Analysts called the pivot “transformational,” noting TeraWulf could triple its current compute footprint.

Why It Matters to Traders

This is a valuation reset story: miners with scalable, low-cost power and permits can trade less like cyclical BTC proxies and more like contracted infrastructure. Google’s support helps unlock financing, but the warrants introduce dilution. Expect a narrative rotation—away from pure hashrate leverage and toward power-as-a-moat. Correlations with Bitcoin may weaken as recurring AI-hosting revenue visibility improves. For crypto traders, a miner pivot reduces forced BTC selling risk at the margin and fuels the broader AI+crypto narrative.

Opportunities to Watch

• Relative value: Consider pairs—long AI-exposed miners with expandable MW versus pure BTC miners during difficulty upticks or halving-driven margin squeezes.
• Milestone trading: Revenue inflects in 2026; watch permits, buildouts, and energization dates for swing entries/exits.
• Power premium basket: Screen for companies with excess land, interconnects, and sub-$60/MWh power; those assets can re-rate.
• Volatility strategies: Elevated IV post-spike can favor spreads; define risk around gap zones and prior supply above.
• Crypto angle: Track miner BTC treasury movements and hash rate; pivots to AI can modestly reduce BTC sell pressure.
• Narrative spillover: Decentralized compute tokens (e.g., AI infrastructure plays) may catch flows—trade liquidity, not hype.

Key Risks

Execution risk on construction and grid interconnects is real, with long lead times and potential cost overruns. Revenue concentration with Fluidstack adds counterparty risk despite Google’s lease support (not a direct compute off-take). Power-price volatility and regulatory scrutiny in New York can compress margins. Equity dilution from warrants and future capex raises is likely. Any 2026 deployment delays could de-rate the stock and deflate the narrative.

Actionable Takeaway

Treat this as a multi-quarter re-rate, not a one-day story. Fade euphoric spikes; build positions on pullbacks into tangible catalysts (permits, equipment deliveries, energization). For risk control, use pre-news gap lows as invalidation and size around construction timelines. Crypto traders: monitor miner treasury sales and difficulty trends—less sell pressure plus AI rotation can support broader market resilience in risk-on windows.

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