IREN’s weaker profitability took attention away from a major milestone in its transformation from a Bitcoin miner into an AI cloud infrastructure company.
Shares of IREN fell 8% in Friday’s premarket trading after its fiscal fourth-quarter results highlighted the significant costs required to accelerate its AI expansion.
Quarterly revenue decreased 5% from the previous quarter to $137.2 million, while adjusted EBITDA dropped 68% to $19.2 million. Higher personnel expenses and continued investment ahead of the AI cloud rollout weighed on profitability. Compared with the same period last year, revenue declined 85% and adjusted EBITDA fell 93%.
The company reported a $684 million net loss for the quarter, including a $450.4 million non-cash impairment charge. Most of the impairment was related to decommissioning Bitcoin mining equipment as IREN repurposes its sites and infrastructure for AI workloads.
The transition is creating substantial expenses before the company can fully realize revenue from its new AI operations. IREN said it has $4 billion in contracted annualized run-rate revenue tied to its planned 2026 capacity, although only $1 billion of that capacity is currently live.
Still, the results showed that the company’s AI strategy is beginning to reshape its business. AI cloud revenue more than doubled from the previous quarter to $70.5 million, surpassing Bitcoin mining revenue of $66.7 million for the first time.
AI cloud services generated 51.4% of total quarterly revenue, while Bitcoin mining accounted for the remaining 48.6%. Mining revenue declined 40% from the previous quarter as IREN continued shifting its power resources and infrastructure toward its growing AI business.
