TeraWulf and Fluidstack plan to offer $1.275 billion in senior secured notes for high-performance computing infrastructure. The notes are due in 2030 and include a 50% excess cash flow offer. Google will backstop $1.8 billion of the lease obligations and receive warrants for approximately 41 million WULF shares.

TeraWulf and Fluidstack formed a joint venture for a 200 MW AI at TeraWulf’s Lake Mariner campus. The deal expanded to 168 MW, bringing the total contracted revenue to $9.5 billion. Phase one of the project is expected to be online in the first half of 2026.

Operating expenses for the facility are estimated at $42.7 million in the first year, with costs projected to escalate at a rate of 3% per year. Net operating income is projected to be $55 million in 2026, growing to $251 million by 2031 with a steady net operating income margin of 84%.

Google must assume the lease in early termination scenarios, with a termination fee starting at $1.3 billion. Citadel disclosed a 5.4% passive stake in TeraWulf as of December 1. Total debt is set to decrease from $1.275 billion to $700 million over a five-year period.

Read more at Yahoo Finance: TeraWulf and Fluidstack joint venture plans $1.275B secured note offering