TLDR
- IREN stock closed at $18.03 on Thursday, down nearly 17% from $21.71.
- Bitcoin mining revenue fell 58% to $28 million as the exit nears.
- AI cloud revenue rose 182% to $200 million, about 88% of total sales.
- The $4 billion ARR target moved from December 2026 to January 2027.
- IREN sees about $15 billion in capital spending in fiscal 2027.
IREN stock closed at $18.03 on Thursday, down nearly 17% from $21.71 the day before. The drop followed its third-quarter report and a wider sell-off in AI and tech names.
It edged back up in extended trading after the earnings release. Even so, the regular session ended deep in the red.
The story inside the numbers is a handoff. Bitcoin mining is shrinking fast, and AI cloud is taking its place.
Bitcoin mining revenue fell 58% to $28 million in the quarter ended Sept. 30. That compares with $67 million in June and $233 million a year ago.
IREN mined 402 BTC, down from 2,039 BTC a year earlier. Average hashrate fell to 8.8 EH/s from 45.3 EH/s.
The company sells its mined bitcoin daily. It held none on Sept. 30.
AI Cloud Now Carries the Load
AI cloud revenue rose 182% to $200 million, up from $71 million in the prior quarter. That is nearly 88% of total revenue, compared with about 52% in June.
Total revenue climbed 66% to $228 million. Cloud services brought in $135 million, and leasing added $65 million.
The leasing income followed Microsoft’s acceptance of the first Horizon data center in August. Co-CEO Daniel Roberts said Horizon 1 entered service with NVIDIA Exemplar status.
Net loss narrowed to $263 million from $684 million. Adjusted EBITDA rose to $66 million from $19 million.
The AI cloud segment held an 86% gross margin, unchanged from last quarter. Revenue backlog reached $20.3 billion, up 22%.
Why the Stock Sold Off
IREN moved its target of more than $4 billion in contracted ARR from December 2026 to January 2027. It could slip into February.
Roberts pointed to a customer-requested design change and supplier timing. He named Microsoft as the customer asking for network changes at its 200-megawatt deployment.
IREN also expects about $15 billion in remaining capital spending in fiscal 2027. Management said $9 billion is covered by cash, committed financing and customer prepayments, while $6 billion still depends on targeted financing.
The company reported $20.6 billion in total assets, including $6 billion in data center assets. It aims to substantially complete its bitcoin mining exit by Dec. 31, 2026, with immaterial mining continuing through 2027.
After the quarter, IREN expanded a deal with an AI research company on a five-year contract worth about $22 million in annual revenue per megawatt. The customer agreed to prepay 90% of the related GPU spending.
