1 Key Catalyst Driving Today's 10% Plunge in TeraWulf

Core Viewpoint - TeraWulf is shifting its narrative from being primarily a Bitcoin mining company to a compute provider, focusing on supporting hyperscalers and AI sector companies [1][5]. Company Transition - TeraWulf has sold off most of its Bitcoin holdings, now holding only $492,000 in digital assets, indicating a significant shift in its business model [2]. - The company is utilizing its 245 megawatts of compute capacity, previously used for Bitcoin mining, to provide compute services to companies needing increased capacity [4]. Market Sentiment - Despite TeraWulf's stock being up over 100% year-to-date, concerns about the AI sector's capital expenditures may negatively impact the company [5][6]. - The market sentiment suggests that larger players in the AI space may prefer to build their own data centers, potentially affecting demand for TeraWulf's services from smaller and mid-sized companies [7].