IREN shares fall 8% as costly AI transition weighs on earnings
IREN shares dropped 8% as the company reported a net loss driven by high costs associated with transitioning from bitcoin mining to AI infrastructure. Despite the losses, AI cloud revenue has successfully overtaken mining revenue for the first time.
Why it matters
The shift reflects a broader trend of crypto-mining firms pivoting toward high-demand AI data center services to diversify revenue streams.
Total quarterly revenue fell 5% from the previous quarter to $137.2 million, while adjusted EBITDA dropped 68% to $19.2 million amid rising employee costs and investment ahead of the AI cloud ramp. The figures were also 85% and 93% lower than the equivalent quarter a year ago.
IREN also reported a $684 million net loss, including a $450.4 million non-cash impairment primarily related to decommissioning bitcoin mining hardware. The company is converting mining sites to support AI infrastructure, creating substantial costs before the associated cloud revenue is fully recognized.
IREN said it has $4 billion of contracted annualized run-rate revenue tied to its 2026 capacity, but only $1 billion is currently operational.
However, the results marked an important milestone in IREN’s transformation. AI cloud revenue more than doubled quarter over quarter to $70.5 million, overtaking bitcoin mining revenue of $66.7 million for the first time.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in