IREN Mining Revenue Falls 58% to $28M as AI Cloud Hits $200M

IREN's bitcoin mining revenue dropped 58% quarter-on-quarter to $28 million, from $67 million, while AI cloud revenue rose to $200 million from $71 million, according to the company's Q1 FY27 earnings release dated Nov. 5 for the quarter ended Sept. 30.

Total revenue climbed 66% to $228 million from $137 million. Net loss narrowed to $263 million from $684 million, and adjusted EBITDA rose from $19 million to $66 million. Of the $200 million in AI cloud revenue, AI cloud services contributed $135 million and cloud leasing $65 million. AI cloud gross margin came in at 86%.

Shares drop, then rebound

The stock fell about 17% in the Nov. 5 regular session to $18.03 from $21.71 before results. It rebounded about 10.6% to $19.95 after hours, as of 7:59 p.m. ET.

The mining wind-down

Bitcoin production fell to 402 BTC from 2,039 BTC a year earlier. Average operating hashrate dropped from 45.3 EH/s to 8.8 EH/s, and installed mining capacity was about 7.9 EH/s, or roughly 180 MW. IREN sells mined bitcoin daily and held none at the end of September.

"We aim to substantially complete this transition by December 31, 2026, with immaterial Bitcoin mining operations expected to continue through calendar year 2027"

The statement comes from IREN's quarterly filing.

The $4 billion target slips

The key negative: IREN moved its target of more than $4 billion in operating annualized revenue from year-end 2026 to Jan. 31, 2027, with a possible extension to the end of February. Management cited a customer-requested design change and supplier timing. Daniel Roberts identified Microsoft as the customer requesting network changes for the 200-MW deployment.

"The more than $4 billion of contracted ARR is funded and now targeted for January"

Daniel Roberts, IREN

The metric annualizes contracted capacity. It is not recognized revenue, which IREN says could be materially lower.

Microsoft accepted the Horizon 1 facility in August, and it remains in service. The contract extends delivery dates without delay credits for Microsoft-requested changes, while talks on delivery dates, fees, credits and cost reimbursements continue. Childress air-cooled deployments, previously more front-loaded, will now be spread across calendar 2027.

Funding the build

CFO Anthony Lewis said IREN spent about $5 billion of capex in the September quarter and plans about $15 billion for the rest of the fiscal year, down from the prior estimate. Cash, committed GPU financing and customer prepayments cover $9 billion, leaving $6 billion to finance. The presentation outlines $12-15 billion of potential funding capacity, and equity and convertible notes remain options.

A five-year contract signed after quarter-end carries about $22 million in annual revenue per MW, with a customer prepayment of 90% of GPU capital costs. Revenue backlog reached $20.3 billion, up 22%. Operating AI cloud capacity was about 93 MW, and total assets stood at $20.6 billion.

What it means

IREN is now an AI infrastructure company that happens to mine a little bitcoin. Mining brought in about 12% of the quarter's revenue, roughly 88% below the $233 million it generated in the same quarter of 2025.

The risk has shifted from hashprice to execution. The Microsoft timeline is slipping, delivery terms are still under negotiation and $6 billion of capex remains unfunded. On the other side sit an 86% AI cloud margin and a $20.3 billion backlog.