IREN's Bitcoin Mining Revenue Falls 58% as AI Exit Nears

By Tom Whitfield

IREN reported bitcoin mining revenue of $28 million for the three months ended Sept. 30, a 58% quarter-over-quarter decline from $67 million and an 88% drop from $233 million a year earlier, according to its 10-Q filing. The company said it will substantially complete its transition away from bitcoin mining to AI infrastructure by the end of this year, with immaterial mining operations expected to continue through calendar year 2027.

The filing quantifies how far the mining business has contracted. IREN mined 402 BTC during the quarter, down from 2,039 BTC in the same period last year. Average operating hashrate fell to 8.8 EH/s from 45.3 EH/s year-over-year. IREN held no bitcoin on its balance sheet as of the end of September, having liquidated its mined coins daily.

"We continue to operate Bitcoin miners at certain of our data centers while we transition this data center capacity toward AI Cloud," IREN wrote in the filing. "We aim to substantially complete this transition by December 31, 2026, with immaterial Bitcoin mining operations expected to continue through calendar year 2027."

How fast is the AI pivot replacing mining revenue?

Total quarterly revenue rose 66% sequentially to $228 million, driven by roughly $200 million in AI cloud revenue — a 182% increase from the prior quarter. AI cloud income now outstrips mining revenue by a factor of about seven.

Profitability metrics moved in the same direction. The company posted a net loss of $263 million, narrower than the $684 million loss in the previous quarter, while adjusted EBITDA rose to $66 million from $19 million.

IREN launched in 2018 and announced in March last year that it would stop expanding its bitcoin mining operations and shift focus to AI and high-performance computing through AI cloud services and data center businesses. Competing miners MARA and CleanSpark have made similar moves toward AI infrastructure.

What backs the balance sheet?

IREN reported $20.6 billion in total assets, including $6 billion of data center assets. The company said its assets and revenue are underpinned by customer contracts with Nvidia, Microsoft, and 13 other customers.

Nasdaq-listed IREN shares fell 17% on Thursday to close at $18.03, in line with a broader sell-off across AI and tech stocks.

Analysts at Bernstein assigned IREN an Outperform rating on Friday and raised their price target to $55. They cited the firm's "self-owned, unencumbered" physical power assets and its flexibility to set its own pace of development as the basis for the upgrade.

IREN's next disclosure cycle will show whether the December 31 target for substantially completing the mining wind-down holds, and how quickly the remaining hashrate capacity converts to contracted AI data center load.