IREN shares slide 17% as Bitcoin mining revenue falls 58%

Total quarterly revenue rose 66% from $137 million in the June quarter to $228 million. AI cloud revenue increased 182%, from $71 million, and accounted for nearly 88% of the total. The company reported a net loss of $263 million, down from $684 million in the preceding quarter, while adjusted EBITDA rose to $66 million from $19 million.

Bitcoin mining revenue declined from $67 million in June to $28 million in September. It was down about 88% from $233 million in the same quarter of 2025. Production fell to 402 BTC from 2,039 BTC a year earlier, and average operating hashrate dropped to 8.8 exahashes per second (EH/s) from 45.3 EH/s. IREN attributed the revenue decline to lower production and weaker average Bitcoin prices as it removed equipment to make room for AI infrastructure. At September 30, installed mining capacity was about 7.9 EH/s, or roughly 180 megawatts of data center capacity.

IREN said it aims to substantially complete its transition away from mining by December 31, 2026, though immaterial mining operations are expected to continue through 2027. It sells mined Bitcoin daily and held no BTC on its balance sheet at the end of September.

AI cloud revenue comprised $135 million from services and $65 million from cloud leasing, following Microsoft’s acceptance of the first Horizon data center deployment in August. The segment posted an 86% gross margin, while the company’s revenue backlog reached $20.3 billion, up 22%. Co-founder and co-CEO Daniel Roberts said the more than $4 billion in contracted annual recurring revenue is funded and now targeted for January 2027, with a possible extension through February. He cited a customer-requested design change and supplier timing; on the earnings call, he identified Microsoft as the customer seeking network infrastructure changes for its 200-megawatt deployment.

IREN expects about $15 billion in remaining capital expenditure during fiscal 2027. Management said $9 billion would come from cash, committed financing and customer prepayments, while the remaining $6 billion depends on targeted financing sources, including additional GPU and data center funding. The company reported $20.6 billion in total assets at September 30, including $6 billion in data center assets.