Bitcoin miner IREN still gets 82% of revenue from BTC after clearing room for Microsoft AI cloud

IREN’s latest fiscal 2026 results reveal that Bitcoin mining continues to dominate its revenue mix, even as the company repurposes mining hardware for artificial‑intelligence (AI) cloud services.

Revenue composition

For the year, IREN reported total revenue of $707 million. Bitcoin mining contributed $578.2 million (approximately 81.8%), while AI Cloud Services generated $128.8 million.

Impairment and net loss

The shift to AI infrastructure triggered a $638.8 million non‑cash impairment, reflecting the accounting value of decommissioned miners before the new AI capacity became operational. After accounting for the impairment and other items, IREN posted a net loss of $702.6 million.

AI contract and run‑rate targets

IREN has a contracted AI run‑rate target of $4 billion for 2026, four times its measured operating run‑rate of $1 billion as of August 26. The company aims to achieve the larger run‑rate by December 31, 2026, but recognizes that revenue will only be recorded after data centers are built, equipment is commissioned, performance testing is completed, and customers accept the capacity.

Microsoft partnership and rollout timeline

Microsoft accepted the first delivery horizon in August. Subsequent horizons (2‑4) are slated for phased delivery in Q4 2026, with contractual grace periods extending into early Q2 2027.

Financing for the transition

To support the AI rollout, IREN secured a delayed‑draw loan (one‑month SOFR + 2.25%) and senior notes at 5.96%, as well as a separate Mackenzie financing of up to $2.4 billion at a fixed 9% rate, maturing 30 months after each staged funding date.

Current mining capacity

As of June 30, IREN operated roughly 23.2 EH/s of Bitcoin mining capacity across about 380 MW of installed power, with plans to convert a substantial portion of this capacity to AI cloud services by year‑end.