AI becomes the main revenue engine for TeraWulf and IREN

TeraWulf and IREN have reached a clear turning point in their move beyond bitcoin mining: AI-related services now account for most of their quarterly revenue. Their latest results also show why rising sales alone cannot settle whether the expensive transition is delivering sustainable earnings.

TeraWulf generated $76.2 million in revenue for the quarter ended September 30, including $63 million from high-performance-computing leases. IREN recorded $200 million in AI cloud revenue against $28 million from bitcoin mining for the same three-month period, its first fiscal quarter of 2027.

TeraWulf’s leasing business grows alongside its cost base

HPC leases represented approximately 83% of TeraWulf’s quarterly revenue. At Lake Mariner, the company reported 102 megawatts of operating critical IT capacity and another 336 megawatts under construction.

That expansion came with an $88.2 million operating loss. TeraWulf nevertheless reported approximately $709.9 million in net income, helped by a non-cash change in the fair value of warrants. Operating performance and the bottom-line figure therefore tell different parts of the quarter’s story.

The company’s development commitments extend well beyond current operations. A 20-year Anthropic lease covers about 401 megawatts of critical IT capacity and approximately $19 billion in contracted revenue over the initial term. Phased service delivery is expected from late 2027 through the second quarter of 2028. Those future contract totals are not revenue already earned.

IREN’s mining contribution falls sharply

IREN’s $228 million in total quarterly revenue rose 66% from the preceding quarter. AI cloud revenue increased from about $71 million to $200 million, while mining revenue fell from $67 million to $28 million. Mining produced $233 million in the comparable quarter a year earlier.

The company reported a $263 million net loss despite $66 million in adjusted EBITDA. Its AI revenue includes both cloud services and leasing income, making the composition relevant when comparing it with companies focused on just one model.

IREN also shifted its target for more than $4 billion of contracted annualized revenue capacity from year-end 2026 to January 2027, with a possible extension into February. The company cited a customer-requested design change and supplier timing. Annualized run-rate revenue is an operating measure and can differ substantially from recognized revenue.

Delivery and financing determine the next stage

IREN identified $15 billion in remaining planned fiscal-2027 capital spending. It expected $9 billion from cash, committed financing and prepayments, with another $6 billion targeted from additional funding sources subject to market conditions.

The companies’ results demonstrate a real change in what generates their sales. Completing facilities, financing equipment and converting contracted demand into delivered services remain separate tasks. That execution will determine whether the AI shift improves underlying profitability as decisively as it has already changed their revenue mix.