Miner Reports $578.2M Mining Revenue While Decommissioning Hardware for Cloud Services
IREN reported that Bitcoin mining generated $578.2 million of its $707 million total annual revenue in fiscal 2026, representing 81.8% of top-line results even as the company transitions data centers to artificial intelligence infrastructure. The company filed fiscal results on August 27.
The pivot to AI cloud services cost IREN a $638.8 million non-cash impairment charge, primarily tied to decommissioning Bitcoin miners as data center sites were converted for AI workloads. The impairment did not represent a direct cash outflow but accounted for assets retired before replacement business entered service. IREN’s AI Cloud Services revenue totaled $128.8 million in FY2026.
As of June 30, IREN maintained 23.2 exahashes per second of installed Bitcoin mining capacity across 380 megawatts of power. The company reported a net loss of $702.6 million for the period.
Contracted Revenue and Phased Delivery Timeline
IREN measured $1 billion in operating annualized run-rate revenue as of August 26, against $4 billion in contracted ARR for 2026 capacity. Microsoft and NVIDIA together represented a substantial majority of that contracted revenue.
Microsoft accepted Horizon 1 in August. Horizons 2 through 4 are targeted for phased delivery in calendar Q4 2026, with contractual grace periods extending into the beginning of Q2 2027. IREN targets December 31 for the $4 billion larger run rate to become operational.
According to IREN’s Form 10-K filing, “revenue generally starts only after data centers are built and energized, equipment is installed and commissioned, performance testing is complete and customers accept the capacity.” The company calculates ARR from contracted GPU pricing multiplied by a full year of hours, including storage and related services, and warns that recognized revenue may be materially lower than this operating measure.
Financing and Capital Structure
IREN raised GPU financing through a delayed-draw loan and senior notes carrying a rate of 5.96%. The company also secured separate financing from Mackenzie of up to $2.4 billion at a 9% fixed rate, structured as a staged-funding loan with a 30-month maturity period after funding begins. GPU financing is priced at 2.25% above one-month SOFR.
The capital raises support the infrastructure buildout required to deliver the contracted AI capacity. Delays in data center completion, equipment installation, or customer acceptance could postpone revenue recognition while financing costs and operating expenses continue. IREN did not disclose specific terms or duration of the Microsoft contract beyond the Horizon phase structure.
