IREN’s AI Cloud revenue climbed to nearly $200 million, surpassing Bitcoin mining, while the company’s shares closed down 17% on Thursday amid a sell-off in technology stocks.
According to the 10-Q filing for the three-month period ended September 30, cited by The Block, IREN generated $28 million in revenue from Bitcoin mining. That represents a 58% decline from $67 million in the previous quarter and an 88% drop from $233 million a year earlier.
The company’s AI cloud services, meanwhile, grew rapidly over the same period. AI Cloud revenue rose 182% quarter over quarter to nearly $200 million, while total revenue increased 66% to $228 million.
Bitcoin production fell to 402 coins
IREN produced 402 BTC this quarter, compared with 2,039 BTC in the same period last year. Its average active mining capacity also fell year over year, from 45.3 EH/s to 8.8 EH/s.
The company, which sells the Bitcoin it mines daily, held no BTC on its balance sheet at the end of September. The decline in mining revenue came as data center capacity was being shifted to AI services.
Transition expected to be largely complete by year-end
The company is converting capacity to AI Cloud while continuing Bitcoin mining at some data centers. The transition is expected to be largely complete by December 31, 2026, with only limited mining activity expected throughout 2027.
The shift is already making its mark on the income statement. However, IREN reported a net loss of $263 million. The loss narrowed from $684 million in the previous quarter, while adjusted EBITDA rose from $19 million to $66 million.
Shares join technology sell-off
IREN shares, which trade on Nasdaq, fell 17% to close at $18.03 on Thursday. The decline came amid a broader sell-off in AI and technology stocks.
According to the company, total assets stand at $20.6 billion, including $6 billion in data center assets. Its customer agreements include Nvidia, Microsoft, and 13 other customers.
Not investment advice.