IREN's Mining Revenue Falls 58% to $28M, Wind-Down Due in December

Bitcoin mining brought IREN $28 million in the three months to 30 September, against $67 million the quarter before and $233 million a year earlier. The company labels that period Q1 FY27. Total revenue still rose 66% to $228 million, carried by AI cloud work that took in $200 million on its own. The net loss narrowed to $263 million from $684 million. Shares closed at $18.03 on Thursday, down about 17% in a broad selloff across AI and technology names.

What the filing says about leaving

The Block headed its story on a full exit by year-end. The filing it quotes does not say that. IREN wrote that it continues to operate miners at certain data centres while that capacity moves toward AI cloud, then gave the date: it aims to substantially complete the transition by 31 December 2026, with immaterial bitcoin mining expected to continue through calendar 2027. Substantially complete is not complete, and the tail into 2027 is written into the same sentence. The Block's own body text uses the filing's wording, and so does crypto.news. The stronger claim appears in the headline and nowhere else.

The machines are mostly off already

Average operating hashrate for the quarter was 8.8 exahashes per second, down from 45.3 a year earlier. The fleet produced 402 BTC against 2,039 in the same quarter of 2025. IREN held no bitcoin at the end of September, because mined coin is sold the day it arrives. One account puts installed capacity near 7.9 exahashes and about 180 megawatts at quarter-end, and that figure sits in a single outlet. The direction was set in March 2025, when the company said it would stop expanding mining. AI cloud overtook mining revenue one quarter ago. This quarter the two are not close.

"This quarter Horizon 1 went into service for Microsoft with NVIDIA Exemplar status, AI Cloud revenue nearly tripled to $200 million, and operating ARR doubled to a billion," said Daniel Roberts, IREN's co-founder and co-chief executive.

The $4 billion target moved

IREN's headline claim is that more than $4 billion of annual recurring revenue is fully contracted and fully funded. The date moved. It was year-end 2026; the release now targets January 2027 and allows an extension to the end of February. Roberts puts the slip down to a customer-requested design change and supplier timing. One outlet names the customer as Microsoft and the deployment as 200 megawatts, and that identification rests on that outlet alone. The measure is not a GAAP one: the release defines it as GPU-hour pricing for commissioned GPUs under contract multiplied by 8,760 hours, plus storage and extras, and states that recognised revenue may be materially lower. Backlog is $20.3 billion, up 22% on the quarter, about two-thirds of it with investment-grade counterparties. Planned capital spending for the rest of the fiscal year is $15 billion, and $6 billion of that depends on financing the company has not yet secured.

The part that has to work now

Mining is the business being switched off, and the quarter shows how far that has gone. What replaces it is not yet profitable. Adjusted EBITDA rose to $66 million from $19 million, a figure the company calculates outside standard accounting rules, while the bottom line stayed a $263 million loss. Total assets are $20.6 billion, including $6 billion of data centre assets written over twenty-year lives, and the customer list is Nvidia, Microsoft and 13 others IREN does not name. December is a target for the transition, not a date when the miners go dark. The filing says immaterial mining runs through 2027 and does not say how much immaterial means. Whether the January revenue date holds is the next test, and the release itself leaves February open. The hashrate those machines give up has been draining out of the sector all year.