Shares of Oklo Inc. (OKLO) tumbled 5.14% in pre-market trading on Thursday, continuing the downward trend that began in after-hours trading on Wednesday. This decline comes in the wake of the company's announcement of a proposed $400 million public offering of common stock, which has raised concerns about potential share dilution among investors.

The stock offering news arrived on the heels of a significant rally during Wednesday's regular trading session, where Oklo shares had surged nearly 30% to close at $68.03. This earlier surge was fueled by the company's revelation 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.

Oklo, a nuclear technology startup backed by Sam Altman, 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 concerns about the dilutive effect on existing shareholders' stakes.