Summary
- In the fiscal fourth quarter, AI cloud revenue hit $70.5 million, exceeding Bitcoin mining revenue for the first time.
- IREN reported a quarterly loss of $684 million, which included $450.4 million in asset impairments.
- Out of IREN’s $4 billion annualized contracted revenue, $1 billion was operational as of August 26.
Shares of IREN dropped over 8% following the company's announcement of a $684 million loss for fiscal 2026, which included significant impairments related to its transition from Bitcoin mining to AI operations.
After-hours trading on Thursday saw the stock decline by 8.2%, closing at $37.19 after ending the day at $40.53.
Myriad: What's the next move for Bitcoin? Make your prediction here.During the quarter ending June 30, AI cloud services generated $70.5 million, a significant increase from $33.6 million in the prior quarter. This marked the first time that AI revenue surpassed Bitcoin mining revenue, which was recorded at $66.7 million, making up 51.4% of IREN's total revenue for the quarter.
Revenue from Bitcoin mining plummeted by 40% from the previous quarter as IREN repurposed its mining facilities for AI applications. Overall revenue decreased by 5% to $137.2 million. Analysts from Bernstein predict that IREN may phase out its Bitcoin mining operations by 2030 as it transitions to using graphics processing units for AI tasks.
Daniel Roberts, Co-Founder and Co-CEO of IREN, stated, "We started IREN with a simple observation: the digital world can scale almost instantly, but the physical world cannot. This year, that founding thesis became tangible. Exponential AI consumption growth has fueled demand for compute capacity well beyond the available supply of infrastructure. IREN was built for this moment."
In a separate report, IREN noted that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 68% to $19.2 million, down from $59.5 million, attributing this decrease to rising employee costs and investments related to its AI cloud expansion.
The reported quarterly loss included $450.4 million in impairments, primarily linked to retired mining equipment, alongside $127.2 million in write-downs and losses on equipment intended for sale or disposal. For the fiscal year, revenue increased by 41% to $707 million; however, substantial impairments of $638.8 million resulted in a total loss of $702.6 million, contrasting with a profit of $86.9 million in fiscal 2025.
The company also reported $4 billion in contracted annualized run-rate revenue expected to be operational by the end of the year.
IREN secured $6.4 billion in GPU financing, which includes $3.6 billion at a 6% weighted-average interest rate, as part of a five-year, $9.7 billion AI cloud agreement with Microsoft. This financing, along with prepayments from Microsoft, covers 96% of the associated costs, while an additional $2.8 billion will support deployments for other clients.
Additionally, IREN entered into a $3.4 billion AI cloud contract with Nvidia in May. This five-year agreement encompasses managed GPU services and is part of a broader partnership aimed at deploying up to 5 gigawatts of AI infrastructure.