IREN Reduced BTC Mining Revenue by 58% Amid Growth in AI Business

American company IREN (NASDAQ: IREN) reported a 58% reduction in quarterly revenue from Bitcoin mining, from $67 million to $28 million. At the same time, its cloud business in the field of artificial intelligence saw a 182% increase in revenue, reaching $200 million. The company aims to nearly complete the transition from cryptocurrency mining to AI infrastructure by December 31, 2026.

According to the report dated November 5, IREN's total revenue for the quarter ending September 30, 2026, increased by 66% compared to the previous quarter, reaching $228 million. Cloud computing and infrastructure leasing accounted for nearly 88% of the income.

The company ended the period with a net loss of $263 million compared to $684 million in the previous quarter. Adjusted EBITDA increased from $19 million to $66 million.

Year-over-year, the reduction in the mining sector was even more pronounced. In July–September 2025, Bitcoin mining revenue was $233 million, whereas in the same period of 2026, it decreased by approximately 88%.

The number of mined BTC decreased from 2,039 to 402, and the average operational hash rate fell from 45.3 to 8.8 EH/s. According to the company, the main reasons for the revenue decline were reduced mining volumes and a lower average Bitcoin price.

As of the end of September, IREN's installed mining capacity was about 7.9 EH/s, occupying approximately 180 MW of data center infrastructure. The company is gradually freeing up this capacity to accommodate equipment intended for AI computations.

In its official report, IREN indicated that it expects to nearly complete the transition to the new business model by the end of December. However, a small volume of mining operations may continue throughout 2027.

The company also continues to sell mined Bitcoins daily. As of September 30, there were no BTC on its balance sheet.

Growth of AI Business and Microsoft Timeline Shifts

Of the $200 million in quarterly AI revenue, $135 million was provided by cloud computing services, and another $65 million by infrastructure leasing.

The growth is partly attributed to the launch of Horizon 1, the first phase of the data center provided by Microsoft in August 2026. The project uses NVIDIA equipment.

According to IREN co-founder and co-CEO Daniel Roberts, the AI business revenue nearly tripled over the quarter, and the current annual ARR reached $1 billion.

However, the company postponed the target date for achieving a contracted ARR of over $4 billion from December 2026 to January 2027, allowing for a further shift to the end of February.

The reasons were changes in Microsoft's network infrastructure requirements and equipment delivery timelines. The ARR figure reflects the estimated annual revenue from operating the corresponding capacities, not the revenue already received.

IREN's quarterly portfolio of future contractual revenues increased by 22%, reaching $20.3 billion. The company plans around $15 billion in additional capital expenditures during the remainder of the 2027 fiscal year, with $6 billion expected to be secured from new funding sources.

Thus, the growth of the AI sector has already changed IREN's business structure, but further expansion depends on the timely commissioning of data centers, contract fulfillment, and securing the necessary funds.