IREN's Billion-Dollar Bet on AI: Company Guides $25B-$30B Capex Plan
IREN Ltd's recent fiscal fourth quarter results show a net loss of $684 million for the period ending June 30, 2026. The significant contributor to this loss is nearly $450 million in non-cash impairment charges related to decommissioning its Bitcoin mining equipment.
Co-CEO Daniel Roberts explained on social media that these losses are largely non-operational and stem from IREN's deliberate shift away from its former identity as a crypto miner. The company has guided capital expenditures of $25 billion to $30 billion for fiscal year 2027, with AI cloud services contributing significantly.
The company plans to fully decommission its Bitcoin mining operations by December 2026 and is pivoting towards AI-related activities. It has secured multi-year agreements with Microsoft and NVIDIA, locking in substantial revenue streams. Bernstein's analysts estimate that IREN's total contracted cloud annual recurring revenue sits at approximately $4.7 billion.