IREN's AI Cloud Revenue Overtakes Mining as the Loss Hits $684M

IREN made more money selling AI compute last quarter than it made mining bitcoin, the first time the split has gone that way. AI cloud revenue was $70.5 million in the three months to 30 June, against $66.7 million from mining. Getting there cost $684 million, most of it written off against mining hardware the company has retired. Total revenue was $137.2 million, and adjusted earnings before interest, tax, depreciation and amortisation fell 68% to $19.2 million. The shares fell on the print.

What the loss is made of

Most of the $684 million never left the building. Impairments of $450.4 million account for the bulk, and they attach to mining rigs decommissioned as sites convert to graphics processors. Decrypt adds a further $127.2 million of write-downs and equipment losses; no other account carries that line. Across the full year IREN lost $702.6 million against an $86.9 million profit the year before, on revenue of $707 million, up 41%. The shape is familiar from the June-quarter prints at MARA and CleanSpark, where a combined $851 million loss was mostly revaluation too. Mining revenue fell 40% in three months as capacity moved across.

Four readings of one share move

The market reaction is reported four ways. Decrypt has the stock down 8.2% after hours to $37.19 from a $40.53 close. The Crypto Times has 8.12% and about $37.24. CoinDesk describes an 8% fall in Friday pre-market trading, and Benzinga puts the pre-market move at 5.90%, to $38.14. After-hours Thursday and pre-market Friday are separate windows, so two of those readings are not in conflict. The two pre-market figures are, and neither outlet mentions the other.

How far revenue actually fell

The revenue line has the same trouble. Decrypt and CoinDesk both report $137.2 million as a 5% decline, and Decrypt labels it year on year. The Crypto Times reports the same $137.2 million as down 27% on a year earlier. Benzinga gives the sequential fall in dollars, $7.6 million, which works out near 5% and matches a quarter-on-quarter reading. The likeliest explanation is that one figure is sequential and the other annual. No account says so. The two cannot both describe the same comparison.

The number the company wants read

IREN's own framing is the contracted book. It reports $4 billion of annualised run-rate revenue tied to 2026 capacity, of which about $1 billion was operating as of 26 August. The Microsoft agreement is $9.7 billion over five years, with $3.6 billion of financing behind it at a 6% weighted-average rate, and Nvidia's managed GPU services contract is $3.4 billion over the same span. GPU financing secured is given as $6.4 billion by Decrypt and $6.5 billion by Benzinga. Both attribute the figure to the company, and neither cites the other.

"This year, that founding thesis became tangible. Exponential AI consumption growth has fueled demand for compute capacity well beyond available supply," co-CEO Daniel Roberts said.

Benzinga alone names Cohere, Prometheus, Perplexity, Figure AI and Higgsfield AI among the cloud customers, and alone reports the miss against analyst estimates: an adjusted loss of $0.74 a share where $0.49 was expected, on revenue short of a $142.32 million consensus. Roberts says 2026 capacity is largely sold out. Most of the revenue recognition sits in the second half of this year and in 2027, and that timing gap is what the quarter exposed. Mining still funds part of the conversion, and mining revenue moves with price and with network difficulty, neither of which the company sets. What IREN has locked in is a book of contracts. It has yet to report a quarter in which they pay.