Superpower Daily
IREN Takes $639M Mining Writedown as AI Cloud Revenue Rises Nea...Meta Tests Data-Center Repair Robots, but Cable Bots Still Need...Tencent Releases Open-Source Hy4, a 770B Model That Activates 4...Amap Releases ABot-Recon, a 12-Frame 3D Mapper for 10,000-Frame...Snowflake Open-Sources Semi-Persistence With Sub-Second Single-...Harvard Uses 7 AI Faculty Avatars in a $699 Founder Bootcamp, W...IREN Takes $639M Mining Writedown as AI Cloud Revenue Rises Nea...Meta Tests Data-Center Repair Robots, but Cable Bots Still Need...Tencent Releases Open-Source Hy4, a 770B Model That Activates 4...Amap Releases ABot-Recon, a 12-Frame 3D Mapper for 10,000-Frame...Snowflake Open-Sources Semi-Persistence With Sub-Second Single-...Harvard Uses 7 AI Faculty Avatars in a $699 Founder Bootcamp, W...
Businesspublished

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

IREN is retiring older mining hardware and preparing sites for AI cloud growth, but contracted annualized capacity revenue remains well ahead of the cloud revenue it has recognized.

By 2 min read
IREN Takes $639M Mining Writedown as AI Cloud Revenue Rises Nearly 8x
Sign in to save and react

Listen to this story

The audio brief

About 1:31
0:001:31
Read transcript
IREN’s shift from bitcoin mining to AI infrastructure just got expensive: the company took a six-hundred-thirty-eight-point-eight-million-dollar impairment, largely against older mining equipment it plans to retire. Shares fell about six percent after fiscal 2026 results made that transition visible. AI Cloud revenue nearly octupled for the year, reaching one-hundred-twenty-eight-point-eight million dollars, up from sixteen-point-four million. But mining still produced five-hundred-seventy-eight-point-two million dollars, most of IREN’s seven-hundred-seven-million-dollar total. The company also swung from an eighty-six-point-nine-million-dollar profit to a seven-hundred-two-point-six-million-dollar net loss, even as total revenue grew forty-one-point-one percent. The more important handoff appeared in the June quarter. AI Cloud revenue rose sequentially to seventy-point-five million dollars, while mining revenue dropped to sixty-six-point-seven million from one-hundred-eleven-point-two million. IREN says its 2026 capacity is largely sold out. Horizon One, the first of four liquid-cooled GPU deployments, has been delivered to Microsoft, and a five-year AI Cloud contract with NVIDIA is valued at three-point-four billion dollars. The company says signed commitments target four billion dollars in annualized capacity revenue by year-end, but that is not recognized GAAP revenue. IREN has seven-point-six-two billion dollars in cash and equivalents to fund the buildout. The central test now is how quickly those commitments become reported cloud sales as mining hardware comes offline.

Story brief

3 key points

IREN’s fiscal 2026 results show its AI infrastructure pivot has reached a financial inflection point: the company is retiring mining hardware, taking a $638.8 million impairment, and funding expansion with $7.62 billion in cash, restricted cash, and equivalents. In the June quarter, AI Cloud revenue surpassed mining revenue in the disclosed sequential comparison, while customer commitments target $4 billion in...

  1. 01

    June-quarter AI Cloud revenue rose to $70.5 million; mining revenue fell to $66.7 million from $111.2 million.

  2. 02

    Mining still generated $578.2 million of fiscal-year revenue, or most of IREN’s $707 million total.

  3. 03

    IREN says 2026 capacity is largely sold out; Horizon 1 is the first of four liquid-cooled GPU deployments delivered to Microsoft.

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.

Sources

  1. 247wallst.comIREN Falls 6% as $639M Mining Rig Writedown Overshadows AI Cloud Growth, TeraWulf Eases
  2. stocktwits.comIREN Stock Falls 8% After Q4 Miss; AI Cloud Shift Gains Momentum

Related coverage

Continue reading