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IREN shares declined sharply after the company reported falling Bitcoin mining revenue and delayed a major artificial intelligence revenue milestone. The NASDAQ-listed operator is replacing cryptocurrency mining equipment with AI infrastructure as it pursues multibillion-dollar contracts.
IREN’s November 5 earnings release states that Bitcoin mining revenue fell 58% quarter-on-quarter, from USD 67 million to USD 28 million during the three months ended September 30, 2026. Revenue was also approximately 88% below the USD 233 million recorded a year earlier.
Bitcoin production dropped from 2,039 BTC to 402 BTC year-on-year, while average operating hashrate declined from 45.3 to 8.8 exahashes per second. “We aim to substantially complete this transition by December 31, 2026, with immaterial Bitcoin mining operations expected to continue through calendar year 2027,” IREN stated.
AI cloud revenue increased 182% sequentially to USD 200 million, accounting for nearly 88% of quarterly revenue. Total company revenue climbed 66% to USD 228 million, exceeding analysts’ USD 221 million estimate.
Adjusted EBITDA rose from USD 19 million to USD 66 million, while the net loss narrowed from USD 684 million to USD 263 million. “This quarter Horizon 1 went into service for Microsoft with NVIDIA Exemplar status, AI Cloud revenue nearly tripled to $200 million, and operating ARR doubled to a billion,” co-CEO Daniel Roberts said.
IREN postponed its target for more than USD 4 billion in contracted annualized recurring revenue from December 2026 to January 2027, potentially February, citing Microsoft-requested network changes and supplier schedules.
“The more than $4 billion of contracted ARR is funded and now targeted for January,” Roberts further added. Its contracted revenue backlog reached USD 20.3 billion, including USD 9.6 billion associated with Microsoft.
IREN closed November 5 at USD 18.03, down 16.95%. Investors also face substantial capital requirements: approximately USD 15 billion in remaining fiscal 2027 spending, with USD 9 billion covered by existing resources and commitments.
The remaining USD 6 billion depends on additional financing. IREN reported USD 5.8 billion in cash and restricted cash, alongside USD 10.2 billion in debt. Its transition highlights the opportunities and financing risks facing Bitcoin miners entering the AI infrastructure market.
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