IREN's AI Cloud Revenue Surpasses Bitcoin Mining for First Time
Bitcoin miner IREN has transformed its infrastructure into a booming AI cloud business, with revenue from AI services surging 687% in a year. The company's AI cloud revenue reached $128.8 million for fiscal 2026, up from just $16.4 million the previous year. In the fourth quarter of 2026, AI cloud revenue ($70.5 million) surpassed Bitcoin mining revenue ($66.7 million) for the first time, marking a significant shift in the company's business model.
Despite a net loss of $703 million for fiscal 2026, IREN's growth trajectory has attracted investors. Shares traded between $41 and $44 in early October, reflecting the company's status as a closely watched name in the AI infrastructure sector. IREN's original Bitcoin mining infrastructure, built with cheap power and spare land, has proven ideal for AI compute needs, including abundant power and available land with existing grid interconnections.
IREN's pivot to AI has secured major clients like Microsoft and Nvidia. The company signed a five-year, $9.7 billion agreement with Microsoft for dedicated GPU infrastructure capacity at its Horizon facilities in Childress, Texas. IREN's customer list also includes AI labs and infrastructure resellers like Perplexity, Figure AI, and Together AI, contributing to a $4 billion-plus annualized run-rate target.
Compared to competitors like CleanSpark and Core Scientific, IREN stands out as the leader in the 'Bitcoin miner turned AI cloud' space. CleanSpark has not yet reported any revenue from AI services, while Core Scientific is still building out capacity. IREN's co-CEO Daniel Roberts highlighted the company's backlog, stating that demand exceeds their ability to deliver, with 85% of their 2026 target already signed.