IREN Bitcoin Mining Revenue Drops 58% as Firm Moves Toward AI Infrastructure
Mining revenue declines as company pivots to AI
IREN reported a 58% drop in its bitcoin mining revenue for the quarter ending September 30. The company earned $28 million from mining during this period, compared to $67 million in the previous quarter. Bitcoin mining is the process of using high-powered computers to secure a blockchain network and earn new digital coins as a reward.
The company announced that it is moving its focus away from mining toward artificial intelligence (AI) infrastructure. IREN aims to complete most of this transition by December 31, 2026. While the company still operates some miners, it expects these operations to be minimal by 2027.
Key figures from the quarterly report
- Bitcoin mining revenue fell 58% quarter-over-quarter and 88% compared to the same time last year.
- The company mined 402 BTC during the quarter, a sharp drop from the 2,039 BTC mined a year ago.
- AI cloud revenue grew by 182% to reach $200 million.
- Total quarterly revenue rose 66% to $228 million due to the growth in AI services.
- IREN holds zero bitcoin on its balance sheet because it sells its mined coins every day.
Official details from company filings
According to its 10-Q filing, IREN’s average operating hashrate fell to 8.8 EH/s from 45.3 EH/s over the last year. Hashrate is a measure of the total computational power used to mine and process transactions on the bitcoin network. The company stated it is currently using its data center capacity to support its growing AI cloud business.
IREN reported total assets of $20.6 billion. This includes $6 billion in data center assets. The firm noted that its business is supported by contracts with major technology companies, including Nvidia and Microsoft.
Financial results and market reaction
The company reported a net loss of $263 million for the quarter. This was an improvement over the $684 million loss reported in the prior quarter. Its adjusted EBITDA, a measure of core operational profitability, rose to $66 million from $19 million.
Despite the growth in AI revenue, IREN shares fell 17% on the Nasdaq on Thursday, closing at $18.03. This decline happened alongside a general sell-off in technology and AI stocks.
Why the shift to AI matters
IREN is part of a growing trend where bitcoin mining firms are moving into the AI and high-performance computing sectors. Other companies, such as MARA and CleanSpark, have also started developing AI infrastructure. This shift allows these companies to use their existing data centers and power access for different types of technology services.
Timeline for the transition
IREN plans to have its transition to AI infrastructure substantially finished by the end of 2026. The firm expects to keep only a very small amount of bitcoin mining active through the 2027 calendar year.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.