Core Insights - Terawulf Inc. (NASDAQ:WULF) experienced a significant decline of 10.93% on Wednesday, closing at $11.57, as investors reduced their stakes in AI-related stocks due to concerns over heavy spending in the sector [1][3] - The drop in Terawulf's stock was influenced by Blue Owl Capital's decision to withdraw its $10 billion financial support for Oracle Corp.'s data center project in Michigan, raising concerns about Oracle's substantial debt of $108 billion and its ability to manage AI expansion costs [2][3] Company Performance - In the third quarter, Terawulf reported total revenues of $50.58 million, representing an 87% increase from $27.06 million in the same period last year [4] - Digital assets were the primary revenue source, contributing $43.37 million, while HPC leasing generated $7.2 million, a notable increase from zero in the previous year [4] - However, the company faced a significant net loss of $455 million, which widened by nearly 2,000% from $22.7 million year-on-year [4] Market Context - The negative sentiment surrounding Terawulf and similar HPC stocks was exacerbated by concerns regarding Oracle's financial health and its ability to repay its debts, which has implications for the broader AI and HPC market [3] - The transition of Terawulf from a Bitcoin-mining firm to a provider of HPC and AI services reflects the growing demand for data services, although the current market conditions pose challenges [3]