Bitcoin Miner IREN Shares Fall as AI Conversion Costs Mount

In brief

• AI cloud revenue reached $70.5 million in the fiscal fourth quarter, surpassing Bitcoin mining revenue for the first time.
• IREN reported a $684 million quarterly loss, including $450.4 million in asset impairments.
• Of IREN’s $4 billion in contracted annualized run-rate revenue, $1 billion was operating as of Aug. 26.

IREN shares fell more than 8% after the Bitcoin miner turned AI data center operator reported a $684 million loss in its fiscal 2026 results.

The stock dropped 8.2% in after-hours trading Thursday to $37.19, after closing at $40.53.

AI cloud services generated $70.5 million in the quarter ended June 30, up from $33.6 million the previous quarter. The segment surpassed Bitcoin mining revenue of $66.7 million for the first time and accounted for 51.4% of IREN’s quarterly revenue.

Mining revenue fell 40% from the prior quarter as IREN converted mining sites for AI use. Total revenue declined 5% to $137.2 million. Bernstein analysts expect IREN to wind down Bitcoin mining by 2030 as the company replaces mining hardware with graphics processing units for AI workloads.

“We started IREN with a simple observation: the digital world can scale almost instantly, but the physical world cannot,” Co-Founder and Co-CEO of IREN Daniel Roberts said in a statement. “This year, that founding thesis became tangible. Exponential AI consumption growth has fueled demand for compute capacity well beyond the available supply of infrastructure. IREN was built for this moment.