IREN Takes $639M Mining Writedown as AI Cloud Revenue Rises Nearly 8x

IREN shares fell about 6% after its fiscal 2026 results put the cost of its business transition in plain view: a $638.8 million impairment tied largely to older bitcoin-mining equipment it plans to retire. AI Cloud revenue reached $128.8 million for the year, up from $16.4 million, but mining remained the larger revenue line over the full fiscal year.

The company reported a fiscal 2026 net loss of $702.6 million, reversing an $86.9 million profit a year earlier. Total revenue still increased 41.1% to $707 million. IREN recorded the impairment largely against older mining equipment as it retires that hardware and shifts sites toward AI cloud infrastructure.

The June quarter shows the handoff in motion

In the June quarter, AI Cloud Services revenue climbed to $70.5 million from $33.6 million in the preceding quarter. Bitcoin-mining revenue fell to $66.7 million from $111.2 million over the same period. That sequential reversal is the clearest operating sign of the pivot, even though fiscal-year mining revenue was still $578.2 million, or most of IREN’s $707 million total revenue.

Customer commitments point to a much larger buildout

IREN said its 2026 capacity is largely sold out, including Horizon 1, the first of four liquid-cooled GPU deployments delivered to Microsoft. It also said it signed a multiyear AI cloud contract with an unnamed leading frontier AI lab. The customer’s identity and the agreement’s financial terms were not disclosed, so its contribution to revenue cannot yet be measured.

Other disclosed AI cloud business

• IREN identified Cohere, Prometheus, Perplexity, Figure AI, Fal AI, and Higgsfield AI among recent AI cloud signings.
• Its five-year AI Cloud contract with NVIDIA is valued at $3.4 billion.

The revenue conversion test remains

IREN said it had secured contracts targeting $4 billion in annualized capacity revenue by year end, while cautioning that annualized recurring revenue is not the same as recognized GAAP revenue. The key question is how rapidly those capacity commitments become reported cloud sales as mining hardware is retired. IREN ended the year with $7.62 billion in cash, restricted cash and equivalents to fund the buildout.