We recently published 10 stocks facing selling pressure before Christmas. Terawulf Inc. (NASDAQ:WULF) is one of Monday’s biggest losers.
Terawulf fell 12.84 percent on Monday to close at $12.49 apiece, as investors took the path of falling Bitcoin prices and renewed concerns about an AI bubble.
At the time of writing, Bitcoin price was down 2.27 percent at $86,168 each as traders appeared to have taken early profits ahead of the Christmas holidays.
Investor sentiment was further dented by fresh concerns about heavy spending on artificial intelligence, driven by tech giant Oracle Corporation, which had racked up $108 billion in debt from its AI investments.
Oracle’s scale of debt raised doubts among investors about how quickly the tech giant could recoup its investments, triggering a broader sell-off that rippled through high-performance computing companies including Terawulf Inc. (NASDAQ:WULF).
In other news, investors also continued to trim their positions amid the dilutive impact of Terawulf Inc.’s (NASDAQ:WULF) mandatory conversion of preferred stock into common stock.
Under the terms, all of the company’s convertible preferred shares were converted into 141.9483 shares of common stock effective December 9.
According to Patrick Fleury, chief financial officer of TeraWulf Inc. (NASDAQ:WULF), the mandatory conversion reinforces the company’s financial discipline and allows it to focus on future growth.
“(This) announcement represents a key milestone in our journey to simplify TeraWulf’s capital structure going forward, supporting future growth while providing transparency to investors,” he said.
While we recognize WULF’s potential as an investment, our conviction lies in the belief that some AI stocks have more promise to generate higher returns and have limited downside risk. If you’re looking for an extremely cheap AI stock that’s also one of the biggest beneficiaries of Trump’s tariffs and offshoring, check out our free report on the best short-term AI stock.
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Disclosure: None. This article was originally published in Internal jumpsuit.