Iren Ditches Bitcoin Mining as AI Business Takes Off
Iren Limited (NASDAQ: IREN) was founded by Daniel and William Roberts around Bitcoin mining, but its latest quarter suggests that's no longer the focus of investors. The company still produces Bitcoin, with mining accounting for most of FY26 revenue, but AI Cloud Services generated $70.5 million in the three months to 30 June, exceeding Bitcoin mining's $66.7 million.
The crossover is a significant one: it's the first quarter where AI Cloud revenue surpassed mining. For the full year, mining was still $578.2 million against $128.8 million of AI Cloud, but the trend is clear.
Iren reported a net loss of $684 million in the quarter, with a non-cash impairment of $450.4 million due to decommissioning mining hardware and converting sites for AI Cloud. The company has lined up $2.8 billion for non-investment-grade customer deployments, including a $2.4 billion facility led by Blue Owl and PIMCO at a fixed 9% rate.
Iren's cash position is strong, with $5.90 billion of cash and cash equivalents as of June 30. The company has contracted $4 billion of annualised run-rate revenue for its 2026 AI capacity, which is largely sold out. However, only $1 billion of that is currently operating.