IREN Mining Revenue Falls 58% as AI Cloud Hits $200 Million

IREN's bitcoin mining revenue fell to $28 million in the three months ended Sept. 30, a 58% drop from $67 million in the prior quarter, the company said in its Nov. 5 results release.

AI Cloud revenue rose to $200 million from $71 million, lifting total revenue 66% sequentially to $228 million. Net loss narrowed to $263 million from $684 million. Adjusted EBITDA, a non-GAAP measure IREN reports, rose to $66 million from $19 million.

Hashrate keeps shrinking

IREN mined 402 bitcoin in the quarter, versus 2,039 a year earlier, and average operating hashrate fell to 8.8 EH/s from 45.3 EH/s, its Form 10-Q filed Nov. 5 shows. It held no bitcoin on the balance sheet at Sept. 30, saying it liquidates mined coins daily.

A bitcoin miner earns revenue by using specialized computers to secure the Bitcoin network and collect newly issued coins plus fees. Hashrate is the computing power those machines contribute. When a firm decommissions miners to free power and floor space for AI servers, both hashrate and mining revenue fall even if bitcoin's price holds up.

The 10-Q says IREN still runs miners at some sites while it converts capacity to AI Cloud, and aims to "substantially complete this transition by December 31, 2026," with immaterial mining expected through calendar 2027. Co-CEO Daniel Roberts said Horizon 1 went into service for Microsoft and operating ARR doubled to $1 billion.

IREN listed $20.6 billion in total assets at quarter-end, with contracts that include NVIDIA, Microsoft and 13 other customers, the release says.

In our opinion: AI Cloud is now about 88% of quarterly revenue, and the firm has put a Dec. 31 date on finishing the mining exit. The open check for readers is whether the more-than-$4 billion ARR target lands in January 2027 as now scheduled, after slipping from year-end.