IREN's fiscal 2026 results show Bitcoin mining still supplies the bulk of its revenue even as the company retires mining hardware to build out AI cloud capacity. A $638.8 million non-cash impairment and a $4 billion contracted revenue target highlight how far the pivot still has to go before it replaces mining as the core business.
Bitcoin mining generated $578.2 million of IREN's $707 million in fiscal 2026 revenue, or about 81.8%, according to results the company filed on Aug. 27. AI Cloud Services contributed the remaining $128.8 million. The split shows mining still dominates the top line even as IREN clears room in its data centers for Microsoft's AI workloads.
A $638.8 million charge from the transition
That shift produced a $638.8 million non-cash impairment, tied mainly to decommissioning miners as sites convert to AI infrastructure. IREN also reported a $702.6 million net loss for the year, which included the impairment and other items. The charge did not represent a cash outflow of that size, but it put an accounting value on assets retired before the AI business had fully come online.
At June 30, IREN still had installed Bitcoin mining capacity of about 23.2 EH/s across roughly 380MW. The company aims to substantially complete that capacity's conversion to AI Cloud Services by year-end.
The gap between contracted and operating revenue
As of Aug. 26, IREN had $1 billion of operating annualized run-rate revenue against $4 billion of contracted run-rate revenue for its 2026 capacity, and it targets having the larger figure operational by Dec. 31. The company calculates that run rate from contracted GPU pricing multiplied by a full year of hours, including storage and related services — an operating measure, not GAAP revenue, and IREN warns recognized revenue may come in materially lower.
Closing the gap depends on infrastructure being delivered and accepted. Microsoft accepted the first phase, Horizon 1, in August, while Horizons 2 through 4 are targeted for delivery in the fourth quarter of 2026, with contractual grace periods extending into the start of the second quarter of 2027. Delay carries its own cost: IREN raised GPU financing through a delayed-draw loan priced at one-month SOFR plus 2.25% and senior notes at 5.96%, alongside a separate Mackenzie facility of up to $2.4 billion at a 9% fixed rate.
Microsoft and Nvidia together represent a substantial majority of IREN's contracted revenue, according to IREN, and new customers are diversifying the roster. But acceptance, performance and counterparty risks stay concentrated until the remaining capacity comes online and starts producing GAAP revenue.
Source: IREN fiscal 2026 results (SEC filing), CryptoSlate
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