Terawulf and IREN Bet Big on AI as Bitcoin Mining Revenue Shrinks

Terawulf reported $76.2 million in Q3 2026 revenue, up sharply year over year on high-performance computing demand, but its operating loss widened to $88.2 million as costs rose. IREN, meanwhile, saw bitcoin mining revenue fall 88% year over year, underscoring the pressure on pure-play mining economics. Both firms are pivoting capital toward AI and HPC infrastructure to offset shrinking mining returns. The widening losses signal that the transition carries heavy upfront costs even as top-line growth continues. Next, watch whether HPC contracts scale fast enough to close the gap and how both operators fund further buildout.