IREN's Cloud Business Overtakes Mining Unit Amidst $684 Million Loss
IREN's Sydney-based data center operator has finally reached an inflection point in its business model. Revenue from AI cloud operations surpassed Bitcoin mining income for the first time, a milestone that came alongside a $684 million annual loss.
The company plans to shutter its remaining mining operations by December 31, 2026, completing a transition that's been underway for months. The bulk of the loss, $639 million, is from a non-cash impairment charge tied to the retirement of older Bitcoin mining hardware.
Analysts at Bernstein and H.C. Wainwright are optimistic about IREN's transformation, citing AI cloud revenue of $70.5 million that edged past the $66.7 million generated by Bitcoin mining. The company's total quarterly revenue of $137.2 million beat the FactSet consensus estimate of $132.3 million.
IREN has a contracted annualized revenue of $4 billion for fiscal 2026, with expectations to exceed that level by December. To fund expansion, the company announced a secured term loan of $1.2 billion alongside $1.2 billion in secured notes earmarked for GPU purchases.