WULF Stock Tumbles Overnight On Raised Stock Offering At 9% Discount — Retail Stays Bullish

• TeraWulf will issue 47.4 million shares at $19 a piece; the offer closes on Wednesday.
• Stock offerings are typically viewed as dilutive, often triggering a knee-jerk selloff.
• WULF stock tumbled 5% in the overnight session.

TeraWulf raised its equity offering and priced it at a discount late Tuesday. The development, along with a quarterly revenue miss and softer-than-expected financial outlook, pushed shares more than 5% lower in the overnight session.

The bitcoin miner is issuing 47.4 million shares at $19 per share, for gross proceeds of $900 million, about 9% below the last closing price. The company said the underwriters of the offer have the option to purchase up to an additional 7.1 million shares of the company.

Earlier in the day, but still after markets closed, TeraWulf first announced an $800 million equity offering and an additional $120 million stock purchase option for the underwriters.

WULF Dilution Concerns Abound

Stock offerings like these are typically viewed as dilutive, often triggering a knee-jerk selloff. Shares of Iren Ltd., a fellow bitcoin miner also pivoting to data centers, saw a similar drop last month after announcing an at-the-market offering for up to $6 billion.

In recent months, TeraWulf has been pivoting toward AI infrastructure, signing long-term multibillion-dollar HPC hosting deals (notably with Fluidstack, backed by Google) and building new data center campuses in Texas and Kentucky to support this shift.

TeraWulf’s equity offer ends on Thursday. The company said it will use the proceeds to fund a portion of the construction costs for its planned campus in Hawesville, Kentucky, and to reduce some of its debt.

Retail View On WULF Holds Strong

The WULF ticker drew significant buzz on Stocktwits, with retail trader sentiment holding firm in the ‘extremely bullish’ zone, unchanged since last week.

“$WULF love all the dumb panic. Literally every AI infrastructure play does this numerous times and it’s for expansion so they can get more tenants,” said a trader.

Another wrote: “$WULF Offering is good news btw. It means demand is there. Short term choppy/down but long term will be amazing and much higher in price. Let's see how low it can go, but it's all a gift. My line in the sand is 18.30 - should not close below there.”

To be sure, short interest in the stock increased from 22.1% last month to 22.8% and is near record high levels. WULF shares have climbed sharply, gaining over 50% in the last 10 sessions. These factors can create a short-squeeze setup.

Also on Tuesday, TeraWulf said it expects first-quarter revenue between $30 million and $35 million, below an analyst estimate of $39.17 million, and adjusted core profit between $0 million and $3 million, lower than Wall Street estimates of $4.86 million. 

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