Author: Nancy, PANews
The story of Bitcoin mining companies pivoting to AI is no longer novel, and has even gradually become an industry standard. However, as more mining firms rush into this track, Wall Street is beginning to lower the valuation premium for this AI pivot narrative.
Blocksbridge Consulting recently pointed out in an analysis that as more mining companies ramp up their AI/HPC infrastructure, the market's reaction to the related transformation stories is noticeably cooling off. Even large-scale AI hosting contracts are finding it increasingly difficult to replicate the market stimulus seen in the early days. Data shows that early AI business announcements often triggered significant stock price volatility, with the average absolute price movement for related companies reaching 24.1% after announcements; however, the average absolute price movement following recent similar transaction announcements has dropped to about 10.2%.
Meanwhile, the commercial value of AI/HPC hosting businesses themselves continues to rise. Data shows the annualized revenue level for related leases has increased from about $1.67 million per megawatt in the early stages to approximately $1.9 million.
This change means the market is no longer buying into the mere slogan of an AI pivot; instead, it's starting to focus on tenant quality, project delivery capabilities, capital expenditure, and the realization of future cash flows. For Bitcoin mining companies, the key to AI transformation has shifted from "storytelling" to the stage of "proving the business model."
As Q2 earnings reports roll out, the AI pivot of Bitcoin miners is entering a new phase of examination. PANews reviewed the latest financial reports of five leading Bitcoin mining companies. In terms of transformation progress and results, some miners are still in the construction phase, with AI businesses yet to contribute revenue; some companies have already generated new revenue through AI/HPC hosting businesses, even starting to reshape their business structure. Overall, most mining companies still face declining revenue, widening losses, and high capital expenditure pressure. The transformation story still has a distance to go before cash flow realization.
Looking at secondary market performance, investor attitudes toward miners' AI pivots are also becoming more rational. Over the past month, most Bitcoin mining stocks have seen varying degrees of correction, which is also influenced by the overall pullback in the global AI sector. However, even when some miners announce large AI/HPC leases or make business progress, the market reaction remains relatively muted.
MARA: Losses Widen, AI Pivot Yet to Contribute Revenue
Data shows MARA's stock price fell about 11.6% over the past month, dropping about 5.25% on the day its Q2 earnings were released.
Looking at the latest quarterly report, MARA's traditional mining business remains pressured by the industry cycle, with profit margins continuing to shrink. Its bet on AI/HPC infrastructure remains largely in the setup phase, with the commercialization story yet to materialize.
In Q2 this year, MARA reported revenue of approximately $175 million, a 27% year-over-year decline, significantly down from $238.5 million in the same period last year. In terms of profit, MARA posted a net loss exceeding $610 million in Q2, compared to a profit of about $810 million a year ago. Adjusted EBITDA was a loss of $361 million, a sharp drop from the $1.245 billion profit in the same quarter last year, mainly impacted by approximately $343 million in digital asset impairment due to the decline in Bitcoin's price.
In this earnings report, MARA explicitly outlined its "Three Infrastructure Strategy," encompassing Bitcoin mining, energy resources, and AI computing infrastructure.
Regarding mining operations, as of the end of Q2, MARA held 35,577 BTC, down 29% from 49,951 BTC a year ago. The company mined 2,422 BTC during the quarter and sold 2,213 BTC, with an average selling price of about $73,000. Currently, its combined holdings of cash and BTC assets amount to approximately $2.5 billion.
In terms of the AI/HPC pivot, as of June 2026, MARA had 1.4 GW of operating capacity, with total capacity reaching 1.9 GW and potential energy capacity of about 4.8 GW. The project in Matagorda County, Texas, is a key future transformation node. This project plans to reach up to 2 GW of power capacity and be developed into an AI/HPC computing campus, with construction expected to commence in 2027. Concurrently, MARA partnered with Starwood to establish a data center and acquired the Long Ridge energy asset and French HPC operator Exaion (full-year estimated revenue under eight figures, i.e., millions to around ten million dollars).
Notably, to support energy infrastructure expansion, MARA established a new $100 million credit facility, with 18,750 BTC serving as initial collateral. This indicates the company is enhancing the liquidity and capital efficiency of its Bitcoin assets to provide funding support for subsequent infrastructure investments.
However, AI/HPC currently contributes virtually nothing to MARA's revenue. During the earnings call, MARA management acknowledged this reality, stating that the company's core task in the first half of this year was scaling up and driving the platform transformation. The second half will enter the execution phase, including securing customer agreements, bringing new assets online, and validating the platform's profit potential.
Core Scientific: AI Revenue Exceeds 80%, Starts Accumulating BTC
Data shows Core Scientific's stock price fell about 3.04% over the past month, rising about 0.05% on the day its Q2 earnings were released.
Based on the latest quarterly report, Core Scientific's traditional mining business share has significantly contracted. Its bet on AI/HPC infrastructure has become revenue-dominant, and the commercialization story is largely realized.
In Q2 this year, Core Scientific reported revenue of approximately $164.2 million, a massive year-over-year increase of about 109%. In terms of profitability, the company still recorded a net loss of about $1.155 billion, but adjusted EBITDA reached about $41.1 million, gross profit was about $70 million, with a gross margin of about 43%.
From a business structure perspective, Core Scientific is rapidly reducing its reliance on mining revenue. Q2 mining revenue fell to about $21.5 million, accounting for roughly 17% of total revenue. Meanwhile, Core Scientific's Bitcoin holdings increased from 547 BTC at the end of Q1 to 848 BTC, adding 301 BTC in the quarter. Previously, it sold BTC extensively to support its AI and high-performance computing business transition but began accumulating again in Q2.
The real driver of revenue growth is the AI/HPC infrastructure business. Q2 hosting revenue reached about $136.7 million, far surpassing $10.6 million in the same period last year, accounting for about 83% of total revenue. Currently, the company has deployed approximately 395 MW of billable capacity, further increasing to 437 MW as of mid-July, corresponding to annualized hosting revenue of about $635 million. Concurrently, Core Scientific announced signing a 15-year infrastructure agreement with AMD, covering 530 MW of capacity across five data center campuses, with potential base contract revenue exceeding $14 billion. Currently, Core's total leasable customer power capacity reaches about 1.1 gigawatts, with potential contract revenue over $24 billion.
Of course, this transformation also comes with high capital expenditure. The miner's Q2 capital expenditure was $797.5 million for data center construction and land acquisition, with net cash used in investing activities exceeding $1.18 billion in the first half. It also supplemented funds through issuances like $3.3 billion in senior secured notes, but interest burdens subsequently increased, and balance sheet leverage rose noticeably. Shareholders' equity remains negative, and the volatility of warrant liabilities persists. Additionally, hosting revenue is highly concentrated among a few clients. Construction progress, power availability, and supply chain stability will directly affect delivery timelines and revenue realization capabilities.
Core Scientific management noted in the Q2 earnings call that the transformation inflection point has passed. The company now possesses the capability to continuously create value for customers and shareholders. The subsequent focus is on efficiently delivering computing capacity, strictly controlling project timelines, and allocating capital responsibly.
TeraWulf: Transformation Expectations Shift to Earnings Realization, HPC Business Becomes Revenue Driver
Data shows TeraWulf's stock price fell about 12.97% over the past month, dropping about 4.29% on the day its Q2 earnings were released.
In the same quarter, TeraWulf's traditional mining business was also affected by the industry cycle, contributing less, but its AI/HPC pivot is beginning to show results, starting to generate significant revenue.
Q2 earnings show TeraWulf's total quarterly revenue was approximately $44.77 million. Bitcoin mining revenue was only about $12.8 million, while HPC leasing revenue reached about $31.93 million, accounting for about 71% of total revenue. The net loss widened to approximately $940.8 million, mainly impacted by changes in the fair value of warrants (a loss of $755.7 million). Adjusted EBITDA was a loss of $18.34 million. As of June 30, combined cash and restricted cash totaled about $3 billion, indicating relatively ample liquidity.
On the operational front, progress at the Lake Mariner data center campus is smooth. As of early July, 102 MW of critical IT capacity was operational, with another 336 MW under construction. The cost per MW of critical IT construction remains within the guidance range of $8 million to $10 million. Following the CB-3 delivery, the $600 million credit support from Google for the Fluidstack lease obligation has officially taken effect. Simultaneously, TeraWulf is advancing applications for an additional 250 MW of power capacity. The Lake Hawkeye campus spans about 183 acres with a potential capacity of approximately 320 MW critical IT load and is not expected to be operational before 2029.
Post-quarter, TeraWulf signed a 20-year data center lease with Anthropic, involving about 401 MW of critical IT capacity at the Justified campus in Kentucky. The contract value over its term is about $19 billion, potentially reaching up to approximately $33 billion if Anthropic exercises two five-year renewal options. Initial deliveries are expected to begin in the second half of 2027.
Additionally, TeraWulf sold its 50.1% stake in the Abernathy joint venture for approximately $530 million and acquired the Muskie Data Campus in Kentucky, securing a power services agreement for up to 1 GW. FERC approved the acquisition of the Morgantown power plant in Maryland, clearing a major regulatory hurdle for its subsidiary Chesapeake Data Campus. This campus can scale up to 1 GW, with data center operations expected to commence around 2030. TeraWulf reiterated its target of signing 250 to 500 MW of new critical IT capacity annually, emphasizing the prioritization of opportunities with stable power, clear customer demand, and scalable infrastructure.
TeraWulf CEO Paul Prager stated that the company is shifting from platform building to scaled execution. The model is replicable, with the core lying in controlling power-advantaged infrastructure, securing long-term creditworthy customers, and delivering capacity in phases.
Hut 8: Revenue Surges but Losses Persist, Completes First AI Campus Commercialization
Data shows Hut 8's stock price fell about 6.3% over the past month, dropping about 9.74% on the day its Q2 earnings were released.
In Q2, Hut 8 reported revenue of approximately $74.9 million, an 81.4% year-over-year increase. The main driver of revenue growth was the computing business (primarily ASIC mining), reaching about $72.5 million. Digital infrastructure revenue was $1.3 million, and power revenue was $1.2 million. Despite strong revenue performance, the company posted a net loss of about $177.1 million for the quarter, primarily dragged down by $138.6 million in unrealized losses on digital assets. Adjusted EBITDA was $10.45 million, a 149% year-over-year increase.
In terms of commercialization, Hut 8 completed the commercialization of its first gigawatt-scale AI data center campus, Beacon Point, signing a second 352 MW IT lease after the quarter ended. The base contract period is valued at approximately $26.6 billion, with expected annual Net Operating Income (NOI) exceeding $1.75 billion. This lease covers 949 MW of contracted IT capacity, with tenants primarily being investment-grade counterparties. Meanwhile, the combined under-construction power capacity at the River Bend and Beacon Point campuses is 1,330 MW, targeting first data hall deliveries in Q2 and Q3 2027, respectively. As of the end of Q2, Hut 8's total development pipeline is about 8,660 MW, primarily impacted by $138.6 million in unrealized losses on digital assets.
Regarding financing, Hut 8 secured $7.5 billion in investment-grade project financing within the quarter: $3.3 billion for the River Bend campus and $4.25 billion for Beacon Point Phase 1. These are non-recourse, non-dilutive arrangements, setting a precedent for investment-grade construction financing for single-sponsor data center projects, providing solid funding support for large-scale construction.
Hut 8 CEO Asher Genoot emphasized that the company's core task has shifted from securing orders to project delivery. The focus is on quickly converting contracted capacity into actual operations and stable cash flow, further solidifying the foundation for the transition from mining to AI infrastructure.
CleanSpark: Mining Revenue Drops, $6.6 Billion Lease Becomes Key Highlight
Data shows CleanSpark's stock price rose about 2.16% over the past month, falling about 5.56% on the day its Q2 earnings were released.
For fiscal Q3 2026, CleanSpark's revenue was $138 million, a 30.5% year-over-year decline. The net loss reached $239.8 million, compared to a net profit of $257.4 million in the same period last year. Adjusted EBITDA also dropped sharply from $377.7 million in the prior year to a loss of $113 million.
As of June 30, CleanSpark held $202.6 million in cash, Bitcoin assets valued at approximately $814.9 million, net long-term debt of $1.78 billion, and working capital of $761 million. Overall, CleanSpark maintains strong asset reserves and financing capabilities, but continued expansion of data centers and computing infrastructure also requires significant capital investment.
Notably, this quarter's revenue for CleanSpark still came entirely from Bitcoin mining, with AI/HPC-related businesses yet to contribute actual revenue.
However, the biggest highlight this quarter was CleanSpark's Sandersville project signing a 20-year, $6.6 billion data center lease agreement with an undisclosed global technology company. According to CleanSpark's disclosure, the project adopts a high-specification data center construction plan, with a per-MW construction cost of approximately $10 million to $12 million. The 175 MW capacity corresponds to a total investment of about $1.75 billion to $2.1 billion, with the project expected to generate average annual Net Operating Income (NOI) of about $330 million. However, this revenue still awaits project completion, with deliveries expected to start as early as Q4 2027. CleanSpark also stated that the required equity funding for the project is already secured, and critical long-lead-time equipment procurement and prepayments have been arranged, ensuring subsequent planned operation.
Compared to some miners still touting AI stories, CleanSpark's advantage lies in having accumulated scaled energy resources, land reserves, and data center operational experience. Currently, its controlled power, land, and data center resources in the U.S. exceed 1.8 GW.
Looking at the report cards from various mining companies, this AI transformation is entering a watershed stage. For investors, the focus is no longer on who has the biggest AI story, but on more specific operational metrics. For Bitcoin miners, possessing power, land, and computing resources is just the entry ticket. Ultimately, what determines valuation reassessment is project delivery capability, client quality, and future cash flow realization ability.
