Why Is TeraWulf (WULF) Stock Down 34% Today?

  • TeraWulf (WULF) stock is falling alongside public stock offering news.
  • The company plans to list shares to raise funds.
  • It hasn’t revealed the finer details of the proposed offering.
WULF Stock - Why Is TeraWulf (WULF) Stock Down 34% Today?

Source: Shutterstock

TeraWulf (NASDAQ:WULF) stock is taking a beating on Thursday after the crypto mining company revealed plans for a public stock offering.

According to a press release from TeraWulf, the company will offer up an additional 15% of shares sold in the offering to its underwriter. The deal lasts for 30 days and JonesTrading Institutional Services LLC is acting as the sole book-running manager of the offering.

Outside of that, TeraWulf hasn’t revealed the finer details of the stock offering. That includes the number of shares offered, the offering price, or how much the company expects to generate from the offering.

However, TeraWulf has revealed what it plans to do with the funds from the offering. It will spend the money on general corporate purposes, such as working capital or capital expenditures.

WULF Stock Reactions

Investors in WULF stock don’t appear happy about the company’s stock offering plan. That’s not too surprising considering a stock offering would dilute their stakes. Also, it would likely drop the price of the company’s stock.

With this news comes heavy trading of WULF stock. As of this writing, more than 1 million shares of the stock have changed hands. That’s already above the company’s daily average trading volume of about 806,000 shares.

WULF stock is down 32% as of Thursday morning.

Investors on the lookout for all of the latest stock market news are in luck!

We’ve got all of the most recent stock coverage traders need to know about on Thursday! That includes why shares of ZyVersa Therapeutics (NASDAQ:ZVSA) and Tenax Therapeutics (NASDAQ:TENX) are rallying, as well as the biggest pre-market stock movers from this morning. Investors looking for all that news can find it below!

More Thursday Stock Market News

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/why-is-terawulf-wulf-stock-down-34-today/.

©2023 InvestorPlace Media, LLC