2 Reasons Why TeraWulf Sank 10% Today

By Chris MacDonald – Dec 15, 2025 at 1:20PM ESTKey PointsMost Bitcoin miners are trending lower on the day, aligning with the price of Bitcoin which is moving lower.For TeraWulf, a company that's stake its future on some large infrastructure investments, that's a concerning tidbit.Equally concerning to some investors is a recent dilutive preferred share conversion. These 10 Stocks Could Mint the Next Wave of Millionaires ›This top Bitcoin miner is plunging today, as investors rethink the growth strategy around this sector.Cryptocurrency mining companies, such as TeraWulf (WULF 10.22%), have had a notable run this year. Surging more than 120% year-to-date, shares of WULF stock have certainly impressed even some of the more speculative investors with this move. However, today's decline of 10.2% as of 1 p.m. ET is suggesting that some investors may be pulling back on their growth expectations for this top Bitcoin (BTC 3.57%) miner. ExpandNASDAQ: WULFTeraWulfToday's Change(-10.22%) $-1.46Current Price$12.87Key Data PointsMarket Cap$6.0BDay's Range$12.39 - $14.0852wk Range$2.06 - $17.05Volume26MAvg Vol41MGross Margin5.02% Several key drivers are shaping a new narrative around TeraWulf, as well as most companies in this space. Let's dive into why TeraWulf is on the decline today, and whether this recent momentum may change course. Lower Bitcoin prices and higher share count spooking investors Source: Getty Images. With some significant plans in tow, TeraWulf's management team has placed substantial bets on becoming more of a compute story than a Bitcoin mining story. With a multitude of GPUs and servers currently in operation (minting new Bitcoin), the company plans to expand its next-generation data centers to handle high-performance computing and AI workloads. This transition is one that investors may have hoped would be financed via surging Bitcoin prices. However, with Bitcoin slumping 3.5% at the time of writing, that's clearly a negative for investors examining TeraWulf's balance sheet and considering the feasibility of this buildout. Advertisement How this buildout will be financed is an even hotter topic than usual, considering TeraWulf just completed a conversion of some of its preferred stock last week, which significantly increased the company's outstanding share count. And while these conversions are typically a net positive (they require a large increase in a company's share price to be executed), further dilution risks tied to this stock are clearly being priced in by the market. I'm of the view that TeraWulf's underlying plans, its strong price appreciation this year, and relatively stable investor base are net positives. We'll just have to see if more Bitcoin volatility throws a bigger wrench into the mix, or if bulls will regain control of this high-quality compute player moving forward.About the AuthorChris MacDonald is a contributing Motley Fool cryptocurrency analyst covering digital assets and blockchain companies. Chris has more than 10 years of professional experience in venture capital and corporate finance. He holds an MBA in finance from the University of British Columbia’s Sauder School of Business.TMFChrisMacDRead NextDec 15, 2025 •By Dominic BasultoShould You Forget Bitcoin and Buy Bitcoin Cash Instead?Dec 15, 2025 •By Chris MacDonaldHut 8 Corp. Plunges Another 12% Today. When Will the Bleeding Stop For This Bitcoin Miner?Dec 15, 2025 •By Alex CarchidiGot Bitcoin or XRP? Do This 1 Thing Right Now or Risk Disaster.Dec 15, 2025 •By Chris MacDonaldWhy Kaspa Plunged 17% This Past WeekDec 15, 2025 •By Josh CableBitcoin Treasuries Are Up 448% Over the Past 2 Years, but Are They a Smart Investment?Dec 15, 2025 •By Neil PatelPrediction: Bitcoin Will Be Worth $270,000 in 5 Years