IREN reported total revenue of $228 million for the three months ended 30 Sep, up 66% from $137 million in the prior quarter, according to its 5 Nov results release. AI cloud brought in about $200 million. Bitcoin mining brought in $28 million, down from $67 million a quarter earlier.
The 10-Q puts a date on the pivot. IREN says it continues to run miners at some data centers while shifting capacity to AI cloud, and that it aims to “substantially complete this transition by December 31, 2026, with immaterial Bitcoin mining operations expected to continue through calendar year 2027.”
The business model, in one sentence: IREN is converting power and halls that once earned block rewards into contracted GPU cloud, and it wants mining to be a rounding error by New Year.
The numbers
AI cloud revenue of $200 million combines $135 million of AI cloud services and $65 million of AI cloud lease revenue, the release says. Segment gross margin on AI cloud is put at 86%. The prior quarter’s AI cloud total was $71 million.
Mining revenue of $28 million compares with $233 million a year earlier. The 10-Q says the company mined 402 bitcoin in the quarter, against 2,039 a year ago, and that average operating hashrate fell to 8.8 EH/s from 45.3 EH/s. IREN liquidates mined bitcoin daily and held none on the balance sheet at quarter-end, The Block noted from the filing.
Adjusted EBITDA rose to $66 million from $19 million. The company still posted a net loss of $263 million, narrower than the $684 million loss in the prior quarter. Total assets were about $20.6 billion, including about $6 billion of data center assets. Revenue backlog is stated at $20.3 billion.
Roberts said a more-than-$4 billion annualised-run-rate target is fully contracted and funded, but the timing has slipped: previously year-end 2026, it is now targeted for January 2027 and “may extend to the end of February,” after a customer-requested design change and supplier timing. The release defines ARR as an operating metric, not GAAP revenue.
The skeptics
The company’s own table is the caution.
Mining is already small next to AI cloud, but it is not zero, and the 10-Q still expects “immaterial” mining into 2027. A $263 million net loss sits beside $66 million of adjusted EBITDA. Capex plans remain large: the release points to about $15 billion of remaining planned FY27 capital expenditure, only part of which it describes as covered by cash and committed GPU financing.
Peers are on related paths for different reasons. Core Scientific’s colo revenue hit $215.4 million with a CEO call targeting a Q4 mining wind-down, while Riot is leasing Corsicana capacity to Anthropic rather than switching the whole income statement overnight.
What’s next
Watch whether mining revenue keeps shrinking toward the 31 Dec “substantially complete” line in the 10-Q, and whether the $4 billion ARR target actually shows up as commissioned, accepted capacity in early 2027 rather than as a contracted headline.
This article is for information only and is not investment advice.