IREN shifts focus as Bitcoin mining revenue falls
Key points
- IREN Limited’s Bitcoin mining revenue fell 58% sequentially to $28 million in Q1 FY2027.
- AI Cloud revenue nearly tripled to $200 million, lifting total quarterly revenue 66% to $228 million.
- IREN is converting mining infrastructure into AI data centre capacity as it targets more than $4 billion in annualised revenue.
IREN Limited (NASDAQ:IREN) recorded $28 million in Bitcoin mining revenue for September 2026, down from $67 million previously.
The decline reflects its transition from cryptocurrency mining towards AI computing and data centre operations.
“This quarter Horizon 1 went into service for Microsoft with NVIDIA Exemplar status, AI Cloud revenue nearly tripled to $200 million, and operating ARR doubled to a billion,” IREN Co-Founder and Co-Chief Executive Officer Daniel Roberts said in a statement.
AI Cloud revenue climbed 182% sequentially to $200 million, accounting for most of IREN’s $228 million quarterly revenue.
The company is decommissioning Bitcoin mining hardware ahead of GPU installations, targeting substantial completion by the end of December 2026.
IREN also reported an 86% AI Cloud segment gross margin and $20.3 billion in contracted revenue backlog.
Its contracted annualised revenue target exceeds $4 billion, with management now targeting January 2027 and allowing for a possible February completion.
Following the announcement, IREN shares were down 16.95% to $18.03.
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