01:01 PM EDT, 03/12/2026 (MT Newswires) -- Babcock & Wilcox Enterprises' ( BW ) shares fell more than 12% in Thursday trading after short seller Wolfpack Research issued a report questioning the company's $2.4 billion design-build agreement with Base Electron.

Wolfpack said it is short Babcock & Wilcox Enterprises ( BW ). The firm argued the counterparty, Base Electron, is tied to B. Riley Financial (RILY), the company's largest shareholder. The report said Base Electron shares the same address as B. Riley's headquarters and lists CEO Bryant Riley as a director.

The report also said Babcock & Wilcox ( BW ) describes Base Electron as a subsidiary of Applied Digital ( APLD ) , while Applied Digital ( APLD ) describes the company as an independent entity in which it holds a 10% stake.

Earlier in March, Babcock & Wilcox ( BW ) said it received full notice to proceed on the agreement with Base Electron to deliver 1.2 gigawatts of new generation capacity meant to supply power to Applied Digital AI factory campuses under separate deals.

Babcock & Wilcox ( BW ), B. Riley, and Applied Digital ( APLD ) didn't immediately reply to MT Newswires' request for comments.

Price: 12.98, Change: -1.78, Percent Change: -12.06