TMC The Metals Company Stock Crashes: Here’s Why Investors Are Bailing

Another bloodbath for TMC shareholders—the stock's nosediving like a crypto project after its founders 'take a break.' What's rattling the market this time?

Deep-sea dreams, Wall Street screams

TMC's ambitious ocean-floor mining play isn't sitting well with traders. Turns out, harvesting polymetallic nodules isn't as easy as dumping tokens on retail investors.

Regulatory undertow

Fresh permitting delays from the ISA (International Seabed Authority) just choked near-term revenue hopes. Because nothing says 'sure bet' like betting on UN bureaucracy.

Short sellers smell blood

Volume spiked 300% as hedge funds piled in—apparently someone still thinks 'ESG' and 'deep-sea mining' can coexist peacefully. Cue the violin music.

One analyst's 'correction' is another's margin call. Welcome to the casino.

Image source: Getty Images.

TMC stock sinks on Q2 business update

TMC reported a net loss of $0.20 per share on no revenue in the second quarter. The sales result in the period wasn't surprising because the seabed mining specialist is still going through permitting processes and laying other foundations to begin commercial operations. Additionally, the company's operating loss of $22 million doesn't look particularly concerning in the context of its long-term business opportunities.

On the other hand, management set a Q4 2027 date to begin mining operations -- and some investors were likely hoping that the company WOULD manage to get things started earlier. TMC stock has seen incredible valuation gains in conjunction with hopes for rapid scaling of its seabed mining operations, and the targeted start date seems to be causing some investors to take profits on the stock.

What's next for TMC?

TMC released two studies suggesting a net present value of $23.69 billion for its mining projects. The company also issued generally reassuring commentary on its outlook for receiving the necessary permitting approvals.

The company's seabed mining projects have seemingly received some significant support in the form of an executive order from President Donald TRUMP aimed at speeding up permitting approvals for offshore domestic mining projects. Conversely, the targeted Q4 2027 production date may have some investors worried that the estimated start date aligns with the ramping up of the next U.S. presidential election cycle. TMC has potentially explosive growth opportunities, but there is a lot of uncertainty on the horizon.