TeraWulf stock drops 26% as AI data-center trade cools
TeraWulf (NASDAQ: WULF) stock fell 26.4% over seven straight losing sessions through July 2, 2026, closing at $21.18—the last trade before the Independence Day break—even as the Nasdaq Composite gained 2.1% during the holiday-shortened week, underscoring a sharp selloff in AI data-center names. Reports that Meta may sell its own AI computing power rattled the neocloud trade ahead of markets reopening on July 6.
Key Takeaways
- WULF stock dropped 26.4% from its June 23 close of $28.78 through July 2, erasing roughly $3.2 billion in market value.
- Shares fell 10.18% on July 2 alone, extending a seven-day losing streak despite a firmer Nasdaq.
- Peer AI infrastructure and crypto-mining stocks also sold off as sentiment cooled on outsourced compute demand.
- Unusual call-option activity on June 30 saw a V/OI ratio of 333.3, suggesting some traders still positioned for upside.
- Despite the pullback, WULF remains up 84.3% year to date through the streak, per Trefis data.
Why did WULF stock fall 26% in seven sessions?
TeraWulf shares finished the July 2 session down 10.18% at $21.18, the last regular trading day before U.S. markets closed for Independence Day on July 3. That marked a seventh consecutive decline and brought the cumulative loss to 26.4% from the June 23 close of $28.78.
Trefis estimates TeraWulf's market capitalization fell by about $3.2 billion over those seven sessions, leaving it near $9.0 billion. On a one-day basis, WULF lost 10.2% while the S&P 500 was flat.
The drawdown follows a long run higher. Trefis data shows WULF still up 84.3% year to date in 2026, 103.0% in 2025, and 135.8% in 2024—framing the slide as a sharp correction within a multi-year rally.
What is dragging down AI data-center stocks?
Pressure on AI infrastructure names intensified after Reuters reported that Meta Platforms is launching a cloud business to sell excess AI computing capacity. Investors worried that more supply—and less reliance on outside providers—could hurt firms building third-party AI data centers.
On the day of the Meta report, CoreWeave fell 10.8% and Nebius Group dropped 12.4%. TeraWulf was not alone among mining-adjacent names: Riot Platforms lost 22.6%, Cipher Digital slid 22.7%, IREN declined 17.8%, and MARA Holdings was off 14.7% between June 26 and July 2.
While the Nasdaq Composite added 2.1% over the same holiday-shortened week, WULF and its peers underperformed sharply. For broader AI infrastructure context, see our Future Tech & AI Wonders coverage.
Are options traders still betting on WULF stock?
On June 30, Moomoo detected a standout WULF call trade: 6,333 contracts changed hands against open interest of just 19, producing a volume-to-open-interest ratio of 333.32.
The position carried a $6.16 million premium, with a $19.00 strike and a January 15, 2027 expiration—roughly 199 days out. Moomoo flags unusual activity when V/OI is at least 10 and open interest is at least 10 contracts.
The strike sits below WULF's late-June levels, which could reflect a bullish floor view or hedging by existing holders. Either way, options desks are clearly tracking WULF volatility closely.
What should investors watch when markets reopen July 6?
Monday, July 6, is the first full session after the Independence Day break—a key test for AI-driven names trying to stabilize. TeraWulf enters the week having underperformed a rising Nasdaq, with support cited around the $20.21–$21.26 zone.
Investors will watch whether the Meta-driven neocloud selloff eases and if sector peers recover. CEO Paul Prager has said power certainty—not hardware alone—is the defining constraint in AI infrastructure, a theme that matters as TeraWulf scales projects such as its Muskie Data campus.
For official trading data, the Nasdaq WULF quote page is the authoritative reference. Until buyers return, WULF stock faces a steep seven-day drop against a year still deeply in the green.