In the fourth quarter of fiscal year 2026, ending June 30, IREN recorded for the first time that revenue from cloud artificial intelligence services exceeded income from Bitcoin mining. According to the published report, revenue from the AI segment amounted to $70.5 million compared to $66.7 million from mining operations. The company's total quarterly revenue reached $137.2 million, approximately five percent below the previous period's figures. Revenue from cloud services doubled from $33.6 million, while income from mining the leading cryptocurrency fell by approximately forty percent from $111.2 million.
Against the backdrop of this strategic transition, IREN recorded a net loss of $684 million. This figure was significantly affected by a non-cash asset impairment of $450.4 million, primarily related to the decommissioning of mining equipment during the conversion of sites to the AI Cloud platform. The company's adjusted EBITDA declined sixty-eight percent — from $59.5 million to $19.2 million. IREN attributed this decline to increased staffing costs and active investment in the platform ahead of the anticipated scaling of cloud services. Following the release of the financial results, the company's shares declined in pre-market trading.
TeraWulf generated $44.8 million in revenue in the second quarter, of which $31.9 million, or approximately seventy-one percent, came from high-performance computing (HPC) capacity leasing. Digital asset operations accounted for $12.8 million, compared to mining revenue of $47.6 million a year earlier. At the end of June, the Lake Mariner campus had 81 MW of critical IT capacity already generating revenue, and following the commissioning of an additional building on July 6, that figure increased to 102 MW. However, the shift of HPC to the primary revenue source has not yet made TeraWulf profitable: adjusted EBITDA came in at negative $18.3 million compared to a positive $14.5 million a year earlier. The company's net loss reached $939.9 million, driven primarily by a non-cash change in the fair value of warrants of $755.7 million and interest expenses of $56.4 million.
At Cipher Digital, the new infrastructure had not yet begun generating revenue in the second quarter. The company reported $24.8 million in revenue, all of which came from Bitcoin mining. Adjusted EBITDA was negative $30 million, and the net loss reached $267.5 million, influenced by a revaluation of warrant liabilities of $150.5 million and interest expenses of $66.7 million. The company only began handing over the first capacity of the Black Pearl data center to the customer in August, with lease payments commencing at the same time. Riot Platforms has already begun recognizing data center revenue, though it still lags significantly behind mining income. In the second quarter, the company's total revenue amounted to $174.2 million, of which $113.7 million came from Bitcoin mining, $23.2 million from data centers, and $37.3 million from engineering. The data center segment accounted for approximately thirteen percent of total revenue, with direct lease payments totaling $4.9 million and infrastructure preparation services for the tenant contributing an additional $18.3 million.
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This material is prepared exclusively for informational purposes and does not constitute financial advice or a recommendation.