IREN posts $684M loss as AI cloud revenue overtakes Bitcoin mining
Bitcoin miner IREN sees AI cloud revenue pass mining for first time
Shares in IREN dropped more than 8% after the company, which once focused on mining Bitcoin, reported a $684 million loss for its fiscal fourth quarter. The company is now shifting most of its resources toward running AI data centers.
The stock fell 8.2% in after-hours trading Thursday to $37.19, after closing at $40.53 earlier that day.
IREN said that AI cloud services generated $70.5 million in the quarter ended June 30, up from $33.6 million the previous quarter. This was the first time AI cloud revenue exceeded Bitcoin mining revenue, which came in at $66.7 million. The AI segment now makes up about half of the company's total quarterly revenue.
Key numbers from the report
- Quarterly net loss: $684 million
- AI cloud revenue: $70.5 million (51.4% of total)
- Bitcoin mining revenue: $66.7 million (down 40% from prior quarter)
- Asset impairments from retired mining hardware: $450.4 million
- Fiscal year revenue: $707 million (up 41% from prior year)
- Contraction in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA): 68% to $19.2 million
- Contracted annualized run-rate revenue scheduled by year-end: $4 billion, with $1 billion already operating as of Aug. 26
Why mining revenue is falling
Total revenue declined 5% to $137.2 million. The drop in mining income reflects IREN converting former Bitcoin mining sites into facilities for AI workloads. Bernstein analysts expect the company to stop Bitcoin mining entirely by 2030 as it replaces mining equipment with graphics processing units, or GPUs, which are used for AI tasks.
The loss included $450.4 million in impairments for retired mining hardware, plus $127.2 million in write-downs and losses on other disposed equipment. For the full year, revenue rose to $707 million, but $638.8 million in impairments pushed the company to a $702.6 million loss, compared with an $86.9 million profit in fiscal 2025.
Major contracts and financing
IREN secured $6.4 billion in GPU financing, including $3.6 billion at a 6% weighted-average interest rate for its five-year, $9.7 billion AI cloud agreement with Microsoft. That financing and Microsoft's prepayments cover 96% of the related costs. Another $2.8 billion will fund deployments for other customers.
The company also signed a $3.4 billion AI cloud contract with Nvidia in May. The five-year agreement covers managed GPU services and is part of a partnership to deploy as much as 5 gigawatts of AI infrastructure.
What leadership says
"We started IREN with a simple observation: the digital world can scale almost instantly, but the physical world cannot," Daniel Roberts, IREN's co-founder and co-CEO, said in a statement. "Exponential AI consumption growth has fueled demand for compute capacity well beyond the available supply of infrastructure. IREN was built for this moment."
Adjusted EBITDA fell 68% to $19.2 million from $59.5 million. IREN attributed the decline to higher employee costs and investment ahead of its AI cloud expansion.
Why this matters
The shift shows how some Bitcoin mining companies are restructuring as demand for AI computing grows. IREN's move to prioritize AI over mining reflects a broader trend in the crypto industry, where firms are exploring other revenue sources as mining becomes less profitable or requires more capital.
What is confirmed
- AI cloud revenue surpassed Bitcoin mining revenue for the first time in the quarter ended June 30.
- IREN reported a $684 million quarterly loss and a $702.6 million annual loss for fiscal 2026.
- The company has contracted annualized run-rate revenue of $4 billion and operates under major agreements with Microsoft and Nvidia.
What is still unclear
The sources do not specify how long the transition from Bitcoin mining to AI infrastructure will take, nor do they provide details on any potential risks to the AI contracts.
