IREN's AI cloud revenue jumps as bitcoin miner accelerates its infrastructure pivot
The company reported $128.8 million in FY26 AI Cloud Services revenue and a $702.6 million net loss after impairments tied largely to decommissioning mining hardware.
By The Third AnglePublished 4 min read
Illustrative computing-infrastructure imagery; it does not depict IREN's facilities. Photo: Unsplash · Unsplash License
IREN reported a sharp increase in its AI Cloud Services business as the former bitcoin miner continued converting infrastructure toward higher-performance computing. The company's fiscal-year results show AI Cloud revenue of $128.8 million, up from $16.4 million a year earlier, while bitcoin-mining revenue rose to $578.2 million from $484.6 million.
The growth came with a large accounting cost. IREN reported a $702.6 million net loss for the year, compared with $86.9 million of net income in fiscal 2025, including $638.8 million of asset impairments. The company said the impairments were primarily tied to decommissioning bitcoin-mining hardware as sites are converted for AI Cloud growth. IREN's FY26 release says the figures reflect an ongoing transition rather than a completed exit from mining.
The new revenue line is becoming material
In the quarter ended June 30, AI Cloud Services contributed $70.5 million, compared with $33.6 million in the prior quarter. Bitcoin-mining revenue fell to $66.7 million from $111.2 million over the same comparison, leaving total quarterly revenue at $137.2 million versus $144.8 million in the March quarter.
IREN also said it signed a new multi-year AI Cloud contract with a leading frontier AI lab. Management reported $4 billion of contracted annualized revenue for 2026 capacity and $1 billion of operating ARR today, but did not name the lab in the release. Those are company-reported commitments and run-rate measures, not recognized revenue.
The proof point is execution, not the headline ARR
The company's financing plan is part of the transition. IREN said $2.8 billion of GPU financings would fund 90% of associated GPU capital expenditure, while its cash, prepayments and committed financing supported continued build-out. The scale of those commitments raises the operational question of how quickly contracted capacity becomes deployed, billable service.
The market reaction sharpened after the release. CoinDesk reported that IREN shares fell about 8% in after-hours trading, reversing a 2.4% gain in the regular session. MarketBeat's extended-hours quote showed a $40.53 close and $37.11 at 8 p.m. Eastern, an 8.43% decline. That reaction is an observation of trading, not a measure of whether the AI pivot will earn a return; investors still have to weigh the impairments, financing needs and customer concentration against the new cloud revenue. Read the CoinDesk market report and the MarketBeat quote record.
