IREN's AI revenue has surpassed Bitcoin mining for the first time, reaching $70.5 million, despite a significant net loss.
In a significant milestone, IREN announced that its revenue from cloud AI services reached $70.5 million for the fourth quarter of the 2026 fiscal year, exceeding the $66.7 million generated from Bitcoin mining. This achievement marks the first time AI services have outperformed mining revenue, as reported in the company's latest financial release.
Despite this revenue growth, IREN faced a substantial net loss of $684 million, largely due to a non-cash asset impairment of $450.4 million linked to the decommissioning of mining equipment as the company pivots towards AI Cloud services.
Overall, IREN's total quarterly revenue declined to $137.2 million, reflecting a 5% decrease from the prior quarter. The company's AI cloud service revenue doubled from $33.6 million, while Bitcoin mining earnings fell nearly 40%, dropping from $111.2 million.
Adjusted EBITDA saw a sharp decline of 68%, falling from $59.5 million to $19.2 million, attributed to rising personnel costs and investments aimed at scaling AI Cloud services. Following the announcement, IREN's stock price dropped in pre-market trading.
TeraWulf's Financial Update
TeraWulf reported $44.8 million in revenue for the second quarter, with $31.9 million (about 71%) stemming from high-performance computing (HPC) capacity rentals. The company’s revenue from digital assets fell to $12.8 million, down from $47.6 million in the previous year.
As of late June, TeraWulf's Lake Mariner campus had 81 MW of IT capacity generating revenue, which increased to 102 MW after opening a new building on July 6. However, the company remains unprofitable, with an adjusted EBITDA of -$18.3 million and a net loss of $939.9 million, primarily due to a non-cash change in warrant value and significant interest expenses.
Updates from Cipher and Riot Platforms
Cipher Digital reported no revenue from its new infrastructure in the second quarter, with total earnings of $24.8 million coming solely from Bitcoin mining. Its adjusted EBITDA was -$30 million, leading to a net loss of $267.5 million, impacted by revaluation of warrant liabilities and interest expenses.
Riot Platforms, meanwhile, has started recognizing revenue from its data centers, although it still trails behind its mining income. The company reported total revenue of $174.2 million in the second quarter, comprising $113.7 million from Bitcoin mining, $23.2 million from data centers, and $37.3 million from engineering services. The data center segment contributed around 13% of total revenue, with limited direct rental income.
In June, there was a noticeable shift among public Bitcoin miners towards AI infrastructure, driven by increasing capital expenditures in the AI sector and a rising demand for facilities with electricity access.
