IREN Cuts Bitcoin Mining Sharply as AI Cloud Sales Nearly Triple and a Full Exit Nears

IREN is quickly turning from a miner into an AI infrastructure company. Bitcoin mining brought in $28 million in the three months ended Sept. 30, down 58% from $67 million in the previous quarter and 88% below the $233 million of a year earlier, while AI cloud sales jumped.

How Small Bitcoin Mining Has Become at IREN

The company mined 402 BTC, compared with 2,039 BTC in the same quarter last year. Average hashrate dropped to 8.8 EH/s from 45.3 EH/s. IREN sells its mined coins every day and held no bitcoin at the end of September. Its filing says the switch of data center capacity to AI cloud should be substantially finished by Dec. 31, 2026, with immaterial mining continuing through 2027. The company first said it would stop expanding mining in March last year, and MARA and CleanSpark have also moved toward AI.

AI Cloud Revenue and Financial Results

Total revenue climbed 66% from the prior quarter to $228 million, with AI cloud contributing about $200 million, up 182%. The net loss narrowed to $263 million from $684 million, and adjusted EBITDA rose to $66 million from $19 million. Total assets stand at $20.6 billion, including $6 billion in data center assets, backed by contracts with Nvidia, Microsoft and 13 other customers.

Share Price and Analyst View

IREN shares dropped 18% on Thursday to $18.03 during the broad selloff in AI and tech stocks. Bernstein kept an Outperform rating on Friday with a $55 target, pointing to the company’s self owned, unencumbered power assets and its freedom to set its own pace of development.