IREN's bitcoin mining revenue falls 58% as it aims to largely exit mining by year-end

Summary

Nasdaq-listed IREN reported bitcoin mining revenue of $28 million for the quarter ended Sept. 30, down 58% from $67 million in the prior quarter, as AI Cloud revenue rose to $200 million and total revenue reached $228 million, according to the company's Nov. 5 release and The Block.

The Block, citing IREN's Form 10-Q, said the firm mined 402 BTC in the quarter (versus 2,039 a year earlier), that average operating hashrate fell to 8.8 EH/s from 45.3 EH/s year-over-year, and that IREN held no bitcoin on its balance sheet at quarter-end because it liquidates mined coins daily.

The Block also quoted the 10-Q saying IREN aims to "substantially complete" its transition of data-center capacity from bitcoin mining to AI Cloud by Dec. 31, 2026, with "immaterial" mining expected to continue through calendar 2027.

IREN said net loss narrowed to $263 million from $684 million in the prior quarter, while adjusted EBITDA rose to $66 million from $19 million; Co-CEO Daniel Roberts said Horizon 1 went into service for Microsoft with NVIDIA Exemplar status and that operating ARR doubled to a billion.

The company said it has $20.6 billion in total assets, including $6 billion of data center assets, with contracts involving NVIDIA, Microsoft and 13 other customers; The Block noted IREN shares fell 17% on Thursday to $18.03 amid a broader AI and tech sell-off.

Key facts

• IREN: total AI Cloud revenue was $200 million (AI Cloud Services $135 million + AI Cloud Lease $65 million) versus $71 million in the prior quarter; bitcoin mining revenue was $28 million versus $67 million. (IREN)
• Co-CEO Daniel Roberts: "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." (IREN)
• The Block, citing the 10-Q: "We aim to substantially complete this transition by December 31, 2026, with immaterial Bitcoin mining operations expected to continue through calendar year 2027." (The Block)
• IREN said its more-than-$4 billion ARR target is fully contracted and fully funded, now targeted for January 2027 (and may extend to February) after a customer-requested design change and supplier timing moved it from year-end. (IREN)

Related stories

• Bitcoin drops below $72,000 as spot ETFs bleed $1.44 billion in five days and BlackRock's IBIT loses $2 billion in nine
• Bitcoin treasury firm Nakamoto owes Kraken $165 million, more than its market value, as Q3 operating revenue turns negative
• Binance sets aside $6.34 billion to cover record hack as TRM and Chainalysis tie it to North Korea's TraderTraitor