2 Reasons Why TeraWulf Sank 10% Today

Group 1 - TeraWulf's stock has surged over 120% year-to-date but experienced a decline of 10.2% recently, indicating a potential pullback in growth expectations from investors [2][3] - The company's market capitalization stands at $6.0 billion, with a current stock price of $12.74, and a gross margin of 5.02% [3] - TeraWulf is transitioning from a Bitcoin mining focus to a compute-centric model, planning to expand its data centers for high-performance computing and AI workloads [6] Group 2 - The decline in Bitcoin prices, which fell by 3.5%, negatively impacts investor sentiment regarding TeraWulf's financial feasibility for its expansion plans [7] - Recent conversions of preferred stock have increased TeraWulf's outstanding share count, raising concerns about further dilution risks in the market [8] - Despite current challenges, TeraWulf's underlying plans and strong price appreciation this year are viewed as net positives, though Bitcoin volatility remains a concern [9]