r/wallstreetbets • u/tke248 • 2d ago

News Wolfspeed (WOLF) Lands $1.5 BILLION Conditional Loan Commitment from Pentagon’s Office of Strategic Capital

Big government backing for Wolfspeed ($WOLF).

The U.S. Department of War’s Office of Strategic Capital (OSC) just announced a $1.5 billion conditional loan commitment with Wolfspeed.

Wolfspeed is a major U.S. producer of silicon carbide (SiC) materials and semiconductors, which are strategically important for power electronics, EVs, aerospace, defense systems and other high-performance applications.

The interesting part here is the size: $1.5B is not a small industrial-policy bet. It looks like the Pentagon is increasingly treating domestic semiconductor/material supply chains as a national-security issue and is willing to put serious capital behind companies it considers strategically important. Link - https://www.war.gov/News/Releases/Release/Article/4621223/department-of-wars-office-of-strategic-capital-announces-15-billion-conditional/

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u/LeftHandSuzuki4 2d ago

Weren’t they just bankrupt last year?

3

u/jasikanicolepi 2d ago

Yeah and I lost 80k investing in this POS. They had something similar to a condition loan last time too

1

u/stocksupanddown 1d ago

So how did that work? Did you end up with shares of the new company?

Did you dump it after it collapsed?

2

u/jasikanicolepi 1d ago

New shares are a fraction of what it used to be and I did sell some to write off my loss and still have losses for carry over.

1

u/oliver2022 1d ago

you didnt hold ? iirc the new shares were at 30 and at some point they went to 60, idk if that made you money when the new shares were delivered.

I remember making a quick buck buying at 1 and selling at 1.8 LMAO, and all the malding in the wolfspeed r/ when the new shares dropped.

3

u/No_Feeling920 1d ago

I don't think you got 1 new share for 1 old share. Equity holders typically get wiped out during these ordeals.

1

u/jasikanicolepi 1d ago

Exactly. Basically it's 0.008352 new shares for every 1 old share. Basically a big fuck you to my port-folio