Terawulf and IREN, two publicly listed bitcoin miners, disclosed third‑quarter 2026 results that highlight a dramatic revenue shift from cryptocurrency mining to artificial‑intelligence (AI) infrastructure services. While Terawulf posted $76.2 million in total revenue, its operating loss widened to $88.2 million, and IREN saw bitcoin mining revenue tumble 88% year‑over‑year, even as AI‑related leasing surged. The filings, released on Nov. 6, illustrate a broader industry trend of miners repurposing high‑performance computing (HPC) assets to capture growing demand for AI compute power.

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Terawulf’s Revenue Mix and Cost Profile

According to Bitcoin.com, Terawulf’s HPC lease revenue reached $63 million in Q3, representing roughly 83% of its top line and driving a 30% sequential increase in total revenue. The remaining $13.2 million came from legacy bitcoin mining and other digital‑asset services, which continued to shrink as a share of sales. The company’s operating loss widened from $24.7 million in the same quarter of 2025 to $88.2 million, primarily due to higher selling, general and administrative expenses tied to staff expansion and a multigigawatt development pipeline. Interest expense also rose, reflecting a larger debt load and the use of convertible notes to finance capital‑intensive projects. Total costs more than doubled to $164.5 million, while cash and cash equivalents stood at $2.4 billion after the sale of a 50.1% stake in the Abernathy Joint Venture for $250 million.

IREN’s Rapid AI Transition

IREN’s quarterly filing with the SEC shows bitcoin mining revenue of $28 million, down 58% from the prior quarter and 88% from a year earlier, with production falling to 402 BTC from 2,039 BTC. In contrast, AI cloud revenue jumped to roughly $200 million, a 182% increase quarter‑over‑quarter, lifting total revenue 66% to $228 million. Adjusted EBITDA rose to $66 million, and the net loss narrowed to $263 million from $684 million a year ago. The company holds $6 billion in data‑center assets and has secured contracts with Nvidia, Microsoft and 13 other customers. IREN expects to complete its transition to AI cloud services by Dec. 31, 2026, maintaining only minimal mining activity through 2027.

Infrastructure Expansion and Future Outlook

Both firms are scaling AI‑focused infrastructure. Terawulf announced plans to expand its Muskie campus in Kentucky to 1 GW of contracted power capacity, with Anthropic data centers slated for delivery by late 2027 under a 20‑year lease that represents about $19 billion in contracted revenue. IREN, meanwhile, is leveraging its newly acquired data‑center assets to meet demand from cloud and AI customers, positioning itself as a provider of enterprise‑grade AI compute rather than a traditional miner. Analysts cited by Bitcoin.com remain optimistic about the long‑term upside of the AI pivot, maintaining a price target of $55 for IREN despite a 17% share decline on Nov. 5.

What to Watch Next

Investors should monitor the rollout of Terawulf’s Muskie and Justified campuses, especially the Anthropic lease performance and any updates to its revolving credit facility. IREN’s progress toward the Dec. 31 transition deadline, including the pace of AI contract signings and any residual mining output, will be critical. Additionally, broader AI‑related capital‑expenditure trends and the stability of cryptocurrency mining margins could influence whether other miners accelerate similar pivots.