IREN Tackles Transition from Mining to AI with Ambitious $25B Capex Plan

IREN's latest quarterly report reveals a company in transition, leaving behind its Bitcoin-mining past and embracing AI cloud services. The numbers tell a mixed story, with a net loss of $638.8 million for the fiscal year, but a closer look at the composition of that loss shows $450.4 million came from non-cash writedowns on mining hardware being taken offline.

The revenue line, however, tells a different tale: AI cloud services generated $70.5 million in revenue, surpassing Bitcoin mining's $66.7 million for the first time. Total revenue reached $707.0 million, up from $501.0 million in the prior year.

IREN has committed to winding down all mining operations by December 2026 and is betting on its $4 billion contracted backlog and accelerating AI cloud revenue growth to justify a massive capital expenditure program. The financing strategy includes a $2.4 billion package arranged by Blue Owl Capital Management, with proceeds earmarked for NVIDIA Blackwell Ultra GPUs.