Terawulf (WULF) Loses 12.8% on AI Concerns, Bitcoin Fall

We recently published 10 Stocks Facing Selling Pressure Ahead of Christmas. Terawulf Inc. (NASDAQ:WULF) is one of the biggest losers on Monday.

Terawulf fell by 12.84 percent on Monday to close at $12.49 apiece, as investors took path from the decline in Bitcoin prices and renewed concerns about an AI bubble.

As of writing, the price of Bitcoin was down by 2.27 percent at $86,168 apiece, as traders appeared to have taken early profits ahead of the Christmas holiday.

Investor sentiment was further dragged down by fresh concerns about heavy spending on artificial intelligence, dragged by technology giant Oracle Corporation, which had raked in $108 billion in debt from its investments in AI.

Oracle’s scale of borrowing raised questions among investors about how quickly the technology giant would be able to recoup its investments, triggering a broader selloff that rippled through high-performance computing companies, including Terawulf Inc. (NASDAQ:WULF).

In other news, investors also continued to trim their positions amid the dilution impact of  Terawulf Inc.’s (NASDAQ:WULF) mandatory conversion of preferred shares into common shares.

Under the terms, all convertible preferred shares of the company have been converted into 141.9483 common shares effective on December 9.

According to TeraWulf Inc. (NASDAQ:WULF) Chief Finance Officer Patrick Fleury, the mandatory conversion reinforces the company’s financial discipline and enables focus on growth moving forward.

“[This] announcement represents a key milestone on our journey to simplify TeraWulf’s capital structure going forward, supporting future growth while providing transparency to investors,” he said.

While we acknowledge the potential of WULF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.