Terawulf (WULF) Loses 12.8% on AI Concerns, Bitcoin Fall

We precocious published 10 Stocks Facing Selling Pressure Ahead of Christmas. Terawulf Inc. (NASDAQ:WULF) is 1 of the biggest losers connected Monday.

Terawulf fell by 12.84 percent connected Monday to adjacent astatine $12.49 apiece, arsenic investors took way from the diminution successful Bitcoin prices and renewed concerns astir an AI bubble.

As of writing, the terms of Bitcoin was down by 2.27 percent astatine $86,168 apiece, arsenic traders appeared to person taken aboriginal profits up of the Christmas holiday.

Investor sentiment was further dragged down by caller concerns astir dense spending connected artificial intelligence, dragged by exertion elephantine Oracle Corporation, which had raked successful $108 cardinal successful indebtedness from its investments successful AI.

Oracle’s standard of borrowing raised questions among investors astir however rapidly the exertion elephantine would beryllium capable to recoup its investments, triggering a broader selloff that rippled done high-performance computing companies, including Terawulf Inc. (NASDAQ:WULF).

In different news, investors besides continued to trim their positions amid the dilution interaction of  Terawulf Inc.’s (NASDAQ:WULF) mandatory conversion of preferred shares into communal shares.

Under the terms, each convertible preferred shares of the institution person been converted into 141.9483 communal shares effectual connected December 9.

According to TeraWulf Inc. (NASDAQ:WULF) Chief Finance Officer Patrick Fleury, the mandatory conversion reinforces the company’s fiscal subject and enables absorption connected maturation moving forward.

“[This] announcement represents a cardinal milestone connected our travel to simplify TeraWulf’s superior operation going forward, supporting aboriginal maturation portion providing transparency to investors,” helium said.

While we admit the imaginable of WULF arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and person constricted downside risk. If you are looking for an highly inexpensive AI banal that is besides a large beneficiary of Trump tariffs and onshoring, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.