Terawulf (WULF) Loses 10.9% on AI Selloff

We recently published 10 Big Names Investors Are Dumping. Terawulf Inc. (NASDAQ:WULF) is one of the worst performers on Wednesday.

Terawulf fell by 10.93 percent on Wednesday to close at $11.57 apiece as investors trimmed their positions in AI-linked stocks over fears about their heavy spending on the industry.

The drop was triggered by Blue Owl Capital’s withdrawal of its $10 billion financial backing for Oracle Corp.’s data center project in Michigan, amid the latter’s scale of borrowing to fund its AI expansion plans.

At its earnings call last week, analysts highlighted Oracle’s $108 billion debt, sparking concerns about how quickly it would be able to pay off obligations and recoup its investments.

The pessimism spilled over to HPC stocks, including Terawulf Inc. and Applied Digital Corp., among others.

Originally a Bitcoin-mining firm, Terawulf Inc. (NASDAQ:WULF) transitioned into HPC and AI servicing to capture the rapidly growing demand for data services.

In the third quarter of the year, the company raked in $50.58 million in total revenues, marking an 87 percent expansion from $27.06 million in the same period last year.

Of the total, digital assets remained the highest revenue generator, accounting for $43.37 million, while HPC leasing generated $7.2 million versus none in the same period last year.

Net loss, on the other hand, widened by nearly 2,000 percent to $455 million from $22.7 million year-on-year.

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