IREN Overtakes Bitcoin Mining Revenue Amid Massive Loss
IREN's shift towards AI cloud services has reached an inflection point. The company's fourth-quarter results show that AI cloud revenue now accounts for 51.4% of total sales, surpassing Bitcoin mining revenue for the first time in its corporate history.
The milestone comes with a price: IREN posted a net loss of $684 million for the quarter, primarily due to an impairment charge on older mining hardware worth $638.8 million. The operating picture beneath the red ink is more nuanced, with the quarterly loss per share beating estimates but revenue falling short at $137.2 million.
The company's strategic narrative is focused on its growing contracted revenue base, which now stands at $4 billion for 2026 and has about 85% already under contract. IREN also delivered its first 50-megawatt liquid-cooled deployment to Microsoft last Thursday and achieved 'Nvidia Exemplar Cloud' status for its GB300-NVL72 platform.
Wall Street remains divided on the company's prospects, with H.C. Wainwright reaffirming its Buy rating and JPMorgan's Richard Choe reiterating his Sell stance. The broader market backdrop hasn't helped, with long-dated Treasury yields hitting a 19-year high and reports of subpar revenue from AI companies like Anthropic and OpenAI.