TeraWulf Inc. — financial distress indicators
Financial-health summary
TeraWulf Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 68/100). The main indicators are critically thin capital, consecutive annual losses and equity eroded by >20% in a year. In its favour: revenue still growing (+20% yoy).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Equity / assets is 1.8% vs a ~5% prudent floor for this business.
Leverage-ratio proxy for regulatory capital (Basel III; U.S. PCA 'well-capitalized' ≥5% leverage; RBI CRAR ≥9% banks / 15% NBFCs). Risk-weighted CET1 is not public in this dataset.
Net loss in each of the last two years.
Sustained losses at a lender usually mean credit losses are outrunning provisions — a risk-management failure.
Book equity changed -43% YoY.
Fast equity erosion (losses, unrealised bond losses, write-downs) was the signature of the 2023 U.S. regional-bank failures.
Price is -53% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Total assets grew +733% in a year.
Hyper-growth outpacing risk controls preceded failures such as Yes Bank (2020) and SVB (2023).
Annualised volatility is 91%.
High equity volatility raises the market-implied default probability.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Revenue still growing (+20% YoY).
📰 Recent news scan
- Cipher Digital Tumbles 6% as Data Center Names Sell Off With Yields Higher; TeraWulf Falls 5%, Applied Digital Pulls BackYahoo Finance · 2026-10-08
- IREN Falls 7% as Financing-Heavy Data Center Names Sell Off Apart From Their Sector Fund; TeraWulf and Core Scientific Drop 5%Yahoo Finance · 2026-10-07
- Wells Fargo keeps AI/HPC operators Overweight ahead of debt raisesYahoo Finance · 2026-10-07
- B. Riley tightens HPC estimates, favors Core Scientific and TeraWulfYahoo Finance · 2026-10-07
- TeraWulf doubles Muskie power to 1 GWYahoo Finance · 2026-10-06
- TeraWulf doubles Muskie contracted power to 1 GW, advances second phase to 2029Yahoo Finance · 2026-10-05
⚖️ U.S. legal pathway — broker-dealer liquidation
- Stockbrokers and commodity brokers cannot reorganise under Chapter 11 (§109(d)); they liquidate under Chapter 7 (subchapters III/IV) or in a SIPA proceeding.
- SIPC protects customer accounts up to $500,000 (including $250,000 cash) for missing customer property — not market losses.
- Net-capital rule (SEC Rule 15c3-1) breaches are the regulatory early warning.
Frequently asked questions
What do TeraWulf Inc.'s financial-health indicators show?
As of 2026-10-08, TeraWulf Inc.'s public financial data places it in the 'Weak' band with a distress score of 68/100, driven by critically thin capital, consecutive annual losses and equity eroded by >20% in a year. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is TeraWulf Inc.'s financial distress score?
68/100 ('Weak').
What works in TeraWulf Inc.'s favour?
Revenue still growing (+20% YoY).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Bank & Finance companies with distress indicators
- CaliberCos Inc. (CWD)Very weak 79/100
- loanDepot, Inc. (LDI)Weak 69/100
- Pineapple Financial Inc. (PAPL)Weak 69/100
- SHF Holdings, Inc. (SHFS)Weak 67/100
- Streamex Corp. (STEX)Weak 67/100
- Soluna Holdings, Inc. (SLNH)Weak 66/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.