IREN Drew 81.8% of FY2026 Revenue From Bitcoin Mining During AI Shift

Bitcoin remained IREN's main source of revenue

IREN generated 81.8% of its fiscal 2026 revenue from Bitcoin mining even as it removed mining equipment to make room for artificial intelligence infrastructure.

Bitcoin mining, which uses computing equipment to process transactions and earn new coins, produced $578.2 million of IREN's $707 million in annual revenue. AI Cloud Services contributed $128.8 million.

Key figures from fiscal 2026

• Bitcoin mining revenue reached $578.2 million.
• AI Cloud Services revenue totaled $128.8 million.
• IREN recorded a $638.8 million non-cash impairment, mainly linked to retiring mining equipment during data center conversions.
• The company reported a $702.6 million net loss, affected by the impairment and other items.
• IREN still had about 23.2 EH/s of installed Bitcoin mining capacity across roughly 380 megawatts as of June 30.

Filings outline conditions for AI revenue

IREN reported $1 billion in operating annualized run-rate revenue as of Aug. 26, compared with $4 billion in contracted annualized run-rate revenue for its 2026 capacity. It targeted Dec. 31 for the larger amount to become operational.

Annualized run-rate revenue, or ARR, estimates a full year of revenue using contracted graphics processor pricing, storage and related services. It is not revenue calculated under standard accounting rules. IREN warned that the revenue it ultimately recognizes could be materially lower.

According to the company's Form 10-K, revenue generally begins after data centers receive power, equipment is installed and tested, and customers accept the capacity. Delays can postpone revenue while costs continue and may lead to delay or service credits.

Microsoft deployments remain staged

Microsoft accepted Horizon 1 in August. IREN targeted phased delivery of Horizons 2 through 4 during the fourth quarter of calendar 2026. Contractual grace periods extend into the start of the second quarter of 2027.

IREN said Microsoft and NVIDIA together accounted for a substantial majority of contracted revenue. This leaves customer acceptance, performance and counterparty risks concentrated among those contracts.

The AI transition is not yet complete

IREN has contracts that could replace its mining operation on a run-rate basis, but its filing does not show that this replacement has been completed. The remaining deployments must be delivered, commissioned and accepted before they can produce recognized AI revenue.

The $638.8 million impairment was an accounting charge rather than a cash outflow. It reflected the value of assets retired before the replacement business had fully entered service.

Remaining deployments will test the revenue target

The next stated milestones are customer acceptance of the remaining Microsoft deployments and the recognized AI revenue they produce. IREN also aimed to substantially complete the conversion of its data center capacity toward AI Cloud Services by the end of 2026.

Source

• CryptoSlate