Movement Alert|TeraWulf Inc. Falls 5.88% in Regular Trading, Sector-Wide Selloff and High Leverage Concerns Trigger Pullback

Market Focus06-05 22:06

On June 5, TeraWulf Inc. fell 5.88% in regular trading, trading at $24.67/share, with trading volume of $119 million. The decline came amid broad-based selling pressure across the crypto and AI infrastructure sector, compounded by concerns over the company's elevated debt levels.

On the news front, peer stocks experienced sharp declines, with IREN Ltd falling 9.91% and Strategy dropping 7.41%, reflecting significant sector-wide contagion. CoinShares recently published a report highlighting that TeraWulf's total debt has reached $5.7 billion, noting that the industry's overall leverage ratio has fundamentally altered its risk profile. Despite Bernstein maintaining an Outperform rating with a $36 target price and the company's recent partnership with Schneider Electric deploying over $290 million in AI infrastructure and liquid cooling systems at its Lake Mariner data campus in New York, the high debt burden and systemic sector selling pressure continue to weigh on the stock in the near term.

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