Why TeraWulf's Shares Plunged 30.1% on Tuesday

Shares of Bitcoin (CRYPTO: BTC) mining company TeraWulf (NASDAQ: WULF) plunged as much as 32.5% on Tuesday after the company announced a stock offering. Shares closed the day down 30.1%. 

After the market closed on Monday, management announced a proposed offering of common stock, and the size of the deal was revealed this morning: $20.6 million in stock will be sold, and underwriters will offer shares on the public markets or through negotiated transactions. The stock dropped because shareholders are pricing in a lot of dilution.

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Source Fool.com