TeraWulf (NASDAQ:WULF) shares dropped 3% in early Monday trading, even as the company revealed that Google (NASDAQ:GOOGL) is raising its equity position in the Bitcoin mining and data center operator.
The tech giant plans to lift its ownership to about 14%, up from roughly 8%, under the terms of a new CB-5 lease arrangement. As part of the deal, Google will provide an additional $1.4 billion in backstop funding to help cover debt financing tied to TeraWulf’s Lake Mariner data center expansion in Western New York.
In return, Google will secure warrants for 32.5 million shares of TeraWulf’s common stock. With this latest commitment, Google’s total backstop support now stands at $3.2 billion.
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