Debt‑Driven Expansion at WULF Raises Concern Over High Leverage

TeraWulf Inc. (NASDAQ: WULF) is leaning heavily on long‑term debt — more than US$5 billion — to fuel its recent expansion. That borrowing binge has pushed the company’s leverage to concerning levels, which might limit its upside potential going forward. As of mid‑2025, TeraWulf carried roughly US$488.7 million in debt, up from just US$72.6 million a year earlier. After accounting for its available cash (about US$90.0 million), the net debt stands at around US$398.7 million. On the cash flow front, the company has posted operating losses: over the last year, it recorded an EBIT loss of about US$119 million and burned through approximately US$450 million in cash. While TeraWulf is still growing — it recently expanded infrastructure capacity and increased its hashrate — the high leverage raises questions about the sustainability of that growth, especially if the revenue ramp‑up doesn’t materialize as anticipated. #TeraWulf #CorporateDebt #CryptoMining #FinancialRisk #SlimScan #GrowthStocks #CANSLIM