The fourth quarter of fiscal year 2026 (ended June 30) was a turning point for IREN: revenue from cloud AI services exceeded income from Bitcoin mining for the first time. The company recorded $70.5 million from AI Cloud versus $66.7 million from mining, confirming a strategic pivot toward high-performance computing.

However, this transition was not easy. IREN's net loss for the quarter amounted to $684 million, largely due to a non-cash asset impairment of $450.4 million. These write-downs are tied to the decommissioning of mining equipment during the conversion of sites for AI Cloud — a typical cost of transformation for an industry where infrastructure becomes obsolete faster than it pays off.

The company's total quarterly revenue reached $137.2 million — approximately 5% less than the previous period. At the same time, income from AI Cloud doubled from $33.6 million, while proceeds from mining the first cryptocurrency plunged by 40% — from $111.2 million. Adjusted EBITDA fell by 68% — from $59.5 million to $19.2 million. IREN attributes this to rising personnel costs and investments in the platform ahead of the anticipated scaling of AI Cloud. Following the earnings release, the company's shares moved lower in pre-market trading, reflecting investor nervousness about the payback timeline.

TeraWulf's Metrics

TeraWulf earned $44.8 million in the second quarter, of which $31.9 million (about 71%) came from leasing capacity for HPC. Digital assets accounted for only $12.8 million versus $47.6 million a year earlier — a nearly fourfold decline. As of the end of June, the Lake Mariner campus had 81 MW of critical IT capacity generating revenue, and after the commissioning of building 6 on July 6, the figure rose to 102 MW.

However, HPC becoming the primary revenue source has not yet made TeraWulf profitable. Adjusted EBITDA turned negative — $18.3 million versus $14.5 million a year earlier. The net loss reached $939.9 million, mainly due to a non-cash change in the fair value of warrants of $755.7 million.

Reports from Cipher and Riot

For Cipher Digital, new infrastructure did not yet generate revenue in the second quarter. The company reported $24.8 million — the entire amount came from Bitcoin mining. Adjusted EBITDA stood at −$30 million, and the net loss was $267.5 million, including a warrant revaluation of $150.5 million. The first capacities of the Black Pearl data center began being handed over to the customer only in August, when rental payments started accruing.

Riot Platforms is already reflecting data center revenue, but it still noticeably lags behind mining. The company's total figure for the quarter was $174.2 million: Bitcoin mining brought in $113.7 million, data centers — $23.2 million, and engineering — $37.3 million. The data center segment accounted for about 13% of revenue, with only $4.9 million coming directly from rental payments and $18.3 million from infrastructure preparation services.

The trend is obvious: public miners are massively pivoting toward AI infrastructure, driven by rising capital expenditures in the AI sector and demand for sites with access to electricity. But, as the reports show, this transition requires enormous costs and patience — the market is not yet willing to pay for promises rather than results.

My conclusion: IREN and TeraWulf are betting on long-term diversification, but short-term losses are inevitable. Investors should watch for when exactly the AI segment begins generating operating profit, not just revenue — otherwise, the current stock volatility will persist.