IREN winds down bitcoin mining as AI revenue hits $200 million

Bitcoin miner IREN now makes most of its money from artificial intelligence, not mining. It reported $228 million in revenue for the quarter to September 30, 2026. AI cloud services brought in $200 million. Mining shrank to $28 million.

The figures came in a results statement IREN filed with the US Securities and Exchange Commission on November 5, 2026. They mark a fast turn for a company that a year ago earned almost everything it made from running bitcoin machines.

Mining revenue fell by more than half

Mining revenue fell by more than half in a single quarter. IREN took in $28 million from mining in the three months to September 30, down 58 percent from $67 million the quarter before, according to The Block. Set against the same period a year earlier, when mining earned $233 million, the fall is 88 percent. IREN mined 402 bitcoin in the quarter. A year before, it mined 2,039.

Its mining power has thinned out too. Average running hashrate, a rough gauge of how much computing a miner aims at the network, dropped to 8.8 exahashes per second from 45.3 a year earlier. IREN keeps no coins. It sells what it mines each day, so nothing sat on its balance sheet at the end of September.

Where the money comes from now

AI cloud services are now the main business. That unit, which rents data center space and Nvidia chips to firms training AI models, brought in $200 million last quarter, up 182 percent from $71 million three months earlier. It accounts for roughly 88 percent of what IREN earns.

Daniel Roberts, Co-Founder and Co-CEO of IREN, pointed to the Microsoft work in the results statement. "This quarter Horizon 1 went into service for Microsoft with NVIDIA Exemplar status," he said. Horizon 1 is one of the data center sites IREN has been fitting out for AI customers.

IREN put its revenue backlog, the work it has signed but not yet delivered, at $20.3 billion, up 22 percent in three months. It is aiming for more than $4 billion in annual recurring revenue, which it says is fully contracted and funded. That goal was first set for the end of 2026. The company now expects to reach it in January 2027, and perhaps February.

Still losing money, still spending

Profit is still out of reach. IREN reported a net loss of $263 million for the quarter, narrower than the $684 million loss three months earlier. Adjusted earnings before interest, tax, depreciation and amortization, a measure the company leans on, came in at $66 million, up from $19 million.

Spending is the other half of the picture. IREN said $15 billion of planned investment remains for its 2027 financial year, paid for by a mix of cash, chip financing and deals it has not yet closed. Total assets stood at $20.6 billion, including $6 billion of data center assets.

Investors were not impressed. IREN shares fell 17 percent to close at $18.03 on November 5, 2026, according to The Block, on a day when crypto and technology stocks sold off together. The drop reflected the wider market mood as much as the results themselves.

Not quite a clean break

IREN is not leaving mining entirely. Not yet, anyway. In its quarterly filing, the company said it aims to "substantially complete this transition by December 31, 2026," while "immaterial Bitcoin mining operations" are expected to run through 2027. So some machines keep running. What IREN has not said is how many, or how much power they will draw.

That pressure shows up across the industry. Riot Platforms, another large miner, signed a $28 billion deal to host AI computing, and American Bitcoin reported a swing to profit built on gains from the coins it holds rather than mining them. Cheap power and ready-built data centers, the things that once made mining pay, are worth more aimed at AI now.

This is about money, not belief. A newly mined bitcoin pays a fixed reward that the network cuts in half every four years, and its price moves on its own. A data center leased to an AI lab pays a contracted rate for years. The same power and cooling earn more pointed at chips than at mining rigs, so IREN has chosen the steadier income. Bitcoin mining made IREN what it is. It also stopped being the best use of its power.

What to watch

Risk sits on both sides of the plan. A backlog of $20.3 billion looks safe on paper, but it rests on a small number of large customers, and the $15 billion IREN still plans to spend is not all in hand. Some of it depends on financing and on contracts the company has yet to close. If AI demand cools, or a big customer walks away, the gap between what IREN earns and what it spends could widen fast. So far, the signed backlog and the live sites argue the other way.

Two questions will decide whether the bet pays off. Can IREN fund the $15 billion it plans to spend without leaning hard on shareholders or costly debt. And can it hit an ARR target it has already pushed back once.

For now, IREN is a data center company that used to mine bitcoin, and still does a little. The numbers say the change is real. Whether it earns its keep is a question for 2027.