IREN’s AI Revenue Surpasses Bitcoin Mining Income for the First Time

IREN's AI revenue surpasses bitcoin mining income for the first time.

In the fourth quarter of the 2026 fiscal year, ending June 30, IREN’s revenue from cloud AI services surpassed its bitcoin mining income for the first time, reaching $70.5 million compared to $66.7 million. This was stated in the company’s announcement.

Amid this transition, IREN recorded a net loss of $684 million. This was influenced by a non-cash asset impairment of $450.4 million, primarily related to the decommissioning of mining equipment as facilities were converted for AI Cloud use.

The company’s total quarterly revenue amounted to $137.2 million, approximately 5% less than the previous period. Revenue from cloud AI services doubled from $33.6 million, while bitcoin mining income decreased by about 40% from $111.2 million.

Adjusted EBITDA fell by 68%, from $59.5 million to $19.2 million. IREN attributed the decline to increased personnel expenses and investments in the platform ahead of expected AI Cloud scaling.

Following the release of the financial report, the company’s shares fell in pre-market trading.

TeraWulf’s Performance

In the second quarter, TeraWulf reported $44.8 million in revenue, with $31.9 million (about 71%) coming from high-performance computing (HPC) capacity leasing. Digital assets accounted for $12.8 million; a year earlier, mining revenue reached $47.6 million.

By the end of June, the Lake Mariner campus had 81 MW of critical IT capacity generating revenue. After the addition of a new building on July 6, this increased to 102 MW.

Despite HPC becoming the main revenue source, TeraWulf has not yet achieved profitability. Adjusted EBITDA was −$18.3 million compared to $14.5 million a year earlier.

TeraWulf’s net loss reached $939.9 million, mainly due to a non-cash change in the fair value of warrants amounting to $755.7 million. Interest expenses accounted for another $56.4 million.

Cipher and Riot Financials

Cipher Digital’s new infrastructure did not generate revenue in the second quarter. The company reported $24.8 million in revenue, all from bitcoin mining.

Adjusted EBITDA was −$30 million, with a net loss of $267.5 million. The latter was affected by a revaluation of warrant liabilities at $150.5 million and interest expenses of $66.7 million.

The first data center capacities at Black Pearl were handed over to the customer only in August, when rental payments began.

Riot Platforms has started reflecting data center revenue, although it still lags behind mining income. In the second quarter, the company’s total revenue was $174.2 million:

• Bitcoin mining — $113.7 million;
• Data centers — $23.2 million;
• Engineering — $37.3 million.

The data center segment accounted for about 13% of total revenue. However, only $4.9 million came from rental payments, while $18.3 million was from infrastructure preparation services for the tenant.

In June, public bitcoin miners increased their shift towards AI infrastructure. This trend has become particularly noticeable amid rising capital expenditures in the AI sector and demand for facilities with access to electricity.