IREN Stock Price Drops 17%, Bitcoin Mining Revenue Falls 58%

IREN reports that as this NASDAQ-listed company prepares to essentially complete its transition from cryptocurrency mining operations by December 31, 2026, its quarterly Bitcoin mining revenue has declined by 58% to $28 million.

• As the company scaled back its mining operations, the Bitcoin mining revenue of IREN decreased by 58% to 28 million US dollars.
• AI Cloud revenue surged by 182% to $200 million, accounting for the majority of IREN's quarterly revenue.
• IREN plans to basically complete the transformation to Bitcoin mining before December, but will still maintain limited operations.
• On November 5th, the stock price of IREN closed at $18.03, with a decline of 16.95% during the trading session of that day.
• Due to Microsoft's requirements for infrastructure adjustments, the original annual recurring revenue target of $4 billion for IREN has been postponed to early 2027.

The financial report released by the company on November 5th shows that within the three months ending September 30th, the cloud revenue of AI increased by 182% to $200 million from $71 million in the previous quarter. Total revenue reached $228 million, a 66% increase from $137 million in the June quarter.

The company reported a net loss of $263 million, compared to a loss of $684 million in the previous quarter. After adjustment, EBITDA increased from $19 million to $66 million.

IREN Bitcoin mining revenue declines, company continues to reduce operations

In the quarterly report, IREN confirms that Bitcoin mining revenue decreased from 67 million US dollars in June to 28 million US dollars in September. Compared to the same period of 2025, when mining revenue reached 233 million US dollars, the decline is approximately 88%.

The Bitcoin production has decreased from 2,039 BTC in the same period last year to 402 BTC. During the same period, the average operating computing power dropped from 45.3 EH /s to 8.8 EH /s. The reason is that the company dismantled some mining equipment to make space for AI infrastructure.

IREN attributes the decline in mining revenue to reduced production and a weakening average price of Bitcoin. As of September 30, its installed mining capacity is approximately 7.9 EH /s, corresponding to a data center capacity of about 180 megawatts.

The company stated in its quarterly report: "Our goal is to essentially complete this transformation by December 31, 2026, and we expect to continue with a small-scale Bitcoin mining operation throughout the calendar year of 2027."

IREN continues to sell the bitcoins it has mined on a daily basis and reports that as of the end of September, it does not hold any BTC on its balance sheet.

In addition, other Bitcoin mining companies are also advancing similar AI infrastructure projects. MARA has collaborated with Starwood to develop a AI data center, while CleanSpark is also expanding its AI computing business beyond Bitcoin mining.

As crypto.news previously mentioned in its reports on European expansion, IREN began to reduce its mining operations earlier in 2026, while simultaneously developing more AI computing power.

AI Cloud Revenue Reaches $200 Million, Microsoft Deployment Launched

The cloud business of company AI accounts for nearly 88% of the quarterly revenue, whereas in June it was around 52%.

Of these $200 million in revenue, AI cloud services contributed $135 million, while cloud leasing contributed $65 million. The leasing revenue came after Microsoft accepted its first Horizon data center deployment in August.

IREN, co-founder and co-CEO, Daniel Roberts stated: "This quarter, Horizon 1 has been deployed to serve Microsoft and has obtained the status of NVIDIA Exemplar. AI cloud revenue has nearly tripled to $200 million, and the operating ARR has doubled to $1 billion."

The company stated that the gross profit margin of its AI cloud business segment was 86%, which remained the same as in the previous quarter. Its backlog of revenue orders reached $20.3 billion, an increase of 22%, with about two-thirds of these orders corresponding to investment-grade counterparties.

IREN previously announced a contract worth $2.8 billion in July and raised its projected annual recurring revenue target to over $4 billion.

However, the latest performance report has postponed the expected achievement of this goal from December 2026 to January 2027, and it may be further extended to February.

Roberts indicates that "over $4 billion in contracted ARR funds have been secured, and the current goal is to achieve this by January." He attributed the delay to design changes requested by clients and scheduling issues with suppliers.

During the financial report conference call, Roberts confirmed that the customer who requested changes to the network infrastructure was Microsoft, involving a deployment of 200 megawatts.

IREN After adjusting the revenue timeline, the stock price fell by 17%

On November 5th, the stock price of IREN closed at $18, a decrease of nearly 17% from the previous trading day's closing price of $21.71. After the release of the financial report, the stock regained some of its losses in after-hours trading.

The adjustment to the revenue timeline is also accompanied by market concerns regarding the delivery costs of the AI infrastructure. IREN estimates that approximately $15 billion in capital expenditures will still be required for the fiscal year 2027.

According to management, $9 billion of this amount will come from cash, committed financing, and customer prepayments. The remaining $6 billion will depend on the sources of targeted financing, including additional GPU and data center financing.

A report in October regarding the infrastructure lending costs of AI provided detailed information on the financing arrangements made by IREN for Microsoft's deployment and other GPU projects.

The company reported that as of September 30, its total assets amounted to $20.6 billion, of which $6 billion were related to data center assets.

At the end of that quarter, IREN expanded its existing agreement with a research company AI and signed a five-year contract, generating approximately $22 million in revenue per megawatt per year.

Roberts indicates that the customer agrees to prepay 90% of the relevant GPU capital expenses. The company also signed a shorter-term agreement with an annual revenue of 40 million US dollars per megawatt.

As of September 30, IREN indicates that its operational AI cloud capacity is approximately 93 megawatts, with further construction still underway at the facilities in Childress, Mackenzie, and Sweetwater.

The company stated that its projects Horizon to Horizon have entered the later stages of construction, while the development of its 100-megawatt Mackenzie site and Sweetwater 1 industrial park is still ongoing.