TeraWulf, IREN Accelerate Shift to AI Infrastructure as Bitcoin Mining Revenue Plunges

What happened

TeraWulf and IREN are shifting from Bitcoin mining toward AI infrastructure as mining revenue falls. TeraWulf reported $76.2 million in third-quarter revenue, including $63 million from leasing high-performance computing data centers, while IREN’s Bitcoin mining revenue fell 88% year over year to $28 million.

Confirmed

Global impact / market context

The shift could replace some declining mining income with payments for AI computing and data-center services. But TeraWulf’s costs rose sharply and its operating loss widened, showing that expansion expenses can outweigh new revenue; IREN’s results will depend increasingly on its planned AI cloud business.

Analyst inference

The companies are pursuing different stages of transition: TeraWulf already reported most revenue from data-center leasing, while IREN plans to nearly finish its move to AI cloud operations by year-end. Falling Bitcoin revenue adds pressure to reduce reliance on mining income.

Analyst inference

What to watch

1. Track whether TeraWulf’s data-center leasing revenue grows enough to offset rising labor, administrative and interest costs, which contributed to its wider operating loss. Analyst inference
2. Check whether IREN follows through on its plan to nearly complete the move to AI cloud operations by year-end and reduce mining exposure by 2027. Proposed
3. Watch for reported AI cloud revenue and costs at both companies; these results would show whether the new business can replace falling Bitcoin mining income. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• en.bloomingbit.io