IREN AI Shift

AI Cloud Revenue Doubles While Mining Hardware Gets Decommissioned

IREN's shift toward AI infrastructure accelerated in Q4. AI Cloud Services revenue jumped to $70.5 million from $35 million in Q3, while bitcoin mining revenue dropped to $66.7 million from prior quarters as the company decommissioned hardware to make room for GPU installations Yahoo Finance. Full-year AI Cloud Services hit $128.8 million, up from just $16.4 million the prior year—a nearly 7-fold increase.

The company operated roughly 40 MW of AI cloud capacity against 23.2 EH/s (approximately 380 MW) of installed bitcoin mining capacity Blockspace. This dramatic gap underscores the early stage of the transformation. IREN expects to narrow it by redirecting existing data centers toward AI workloads over the next 18 months.

2 sources

Massive Non-Cash Charges Mask Underlying Business Momentum

Q4 losses included a $684 million net loss, but the real story lies in non-cash charges: $450.4 million in impairments tied to mining hardware and a $102.1 million reduction in asset values held for sale Blockspace. These write-downs reflect the company's decision to devalue older mining equipment as it transitions toward AI capacity.

Adjusted EBITDA came in at $19.2 million for Q4, below some investor expectations, though the figure reflects the operational headwinds of capacity being offline during the hardware swap TipRanks. The underlying AI Cloud Services business is ramping faster than initial guidance suggested, signaling strong demand for cloud GPU infrastructure.

2 sources

NVIDIA and Microsoft Partnerships Fuel Multi-Gigawatt Expansion

IREN signed a multi-gigawatt deployment agreement with NVIDIA, potentially reaching 5 GW of capacity with an associated equity deal worth up to $2.1 billion Blockspace. Microsoft also inked a cloud services contract valued at approximately $9.7 billion. Together, these deals represent roughly $13.1 billion in committed cloud revenue and cement IREN's role as a critical AI infrastructure provider.

To accelerate European expansion and boost operational capabilities, IREN acquired Nostrum and Mirantis, adding new data center sites and software-infrastructure expertise. These moves position the company to handle multi-region deployments and compete directly with hyperscalers in the race for GPU-ready capacity.

1 source

Bitcoin Mining Revenue Remains Stable Despite Capacity Shift

Full-year bitcoin mining revenue was $578.2 million, a modest increase despite decommissioning hardware in Q4 Blockspace. The company's 23.2 EH/s of installed capacity generates steady returns, but management views mining as a cash-cow business rather than a growth driver. As GPU capacity expands, mining's contribution to overall revenue will shrink further.

1 source