Shares of Oklo Inc. (OKLO) plummeted 7.16% in pre-market trading on Thursday, following the nuclear technology startup's announcement of a proposed $400 million public offering of common stock. The sharp decline comes on the heels of a significant 29% rally during Wednesday's regular trading session, suggesting a combination of profit-taking and concerns about potential share dilution.

The stock offering news, which arrived after market close on Wednesday, has raised concerns among investors about the dilutive effect on existing shareholders' stakes. Oklo stated that it intends to use the net proceeds from the stock offering for general corporate purposes, working capital, capital expenditures, and potential future investments. The offering is being led by Goldman Sachs & Co. LLC and BofA Securities, with an expected closing date of June 16, 2025, subject to customary conditions.

While the capital raise may strengthen Oklo's financial position, the market's immediate reaction reflects apprehension about the impact on share value. This downturn contrasts sharply with Wednesday's surge, which was fueled by the company's announcement that it had been conditionally selected to provide power to Eielson Air Force Base in Alaska, marking a potential long-term power purchase agreement with the U.S. Air Force. As investors digest the news of the stock offering, they appear to be reassessing the stock's valuation in light of the potential dilution, despite the company's recent positive developments in securing government contracts.