Bitcoin mining remains the dominant revenue source for IREN despite the company's strategic shift toward artificial intelligence infrastructure. According to fiscal 2026 results filed Aug. 27, Bitcoin mining generated $578.2 million of IREN's $707 million in annual revenue, accounting for approximately 81.8% of total revenue. AI Cloud Services contributed $128.8 million during the same period.
The company's infrastructure transition triggered a $638.8 million non-cash impairment charge, primarily reflecting the decommissioning of mining hardware as data center sites were converted for AI workloads. IREN also reported a $702.6 million net loss for the period, which was affected by the impairment and other items. The impairment represented an accounting valuation of retired assets rather than a direct cash outflow.
AI Revenue Expectations and Timeline
IREN has contracted $4 billion in annualized run-rate revenue for AI cloud services, though as of Aug. 26, the company had only $1 billion in operating annualized run-rate revenue. The company targets reaching the $4 billion operating level by Dec. 31.
Revenue recognition for AI services depends on multiple conditions, including completion of physical infrastructure delivery, equipment installation and commissioning, performance testing, and customer acceptance. Microsoft accepted the first phase of deployment in August, with subsequent phases targeted for phased delivery through calendar Q4 2026 and extending into early calendar Q2 2027.
IREN calculates annualized run-rate revenue from contracted GPU pricing multiplied by a full year of operating hours, including storage and related services. The company cautioned that recognized revenue may be materially lower than this operating measure and that delays in infrastructure delivery or customer acceptance could postpone revenue recognition.
Operational Status and Financing
As of June 30, IREN maintained installed Bitcoin mining capacity of approximately 23.2 exahashes per second across roughly 380 megawatts. The company aims to substantially complete the transition of this data center capacity toward AI cloud services by year-end.
IREN secured GPU financing for the Microsoft contract through a delayed-draw loan priced at one-month SOFR plus 2.25% and senior notes at 5.96%. Additional Mackenzie financing of up to $2.4 billion carries a 9% fixed rate and matures 30 months after each relevant staged funding date.
Microsoft and NVIDIA together represent a substantial majority of IREN's contracted AI revenue, though the company is working to diversify its customer base.
