IREN shares dropped more than 8% in after-hours trading Thursday after the former Bitcoin mining specialist reported weaker-than-expected fiscal fourth-quarter results, despite its transformation into an AI infrastructure company.
IREN stock price (Source: CoinCodex)
The company reported revenue of $137.2 million for the quarter ended June 30, below Wall Street expectations of about $157.1 million. Adjusted loss came in at $0.41 per share, compared with expectations for a loss of roughly $0.34.
IREN's AI Business Overtakes Bitcoin Mining
The headline numbers masked a dramatic change in IREN's revenue mix. AI Cloud Services revenue more than doubled sequentially to $70.5 million from $33.6 million, accounting for just over 51% of total quarterly revenue. Bitcoin mining revenue, meanwhile, fell to $66.7 million from $111.2 million in the previous quarter.
For the full fiscal year, AI Cloud revenue surged nearly eightfold to $128.8 million, while total company revenue climbed 41% to $707 million.
IREN reported a $684 million quarterly net loss, widened from $247.8 million in the previous quarter. However, $450.4 million of the latest loss came from non-cash impairments, largely associated with decommissioning bitcoin mining equipment as infrastructure is repurposed for AI workloads.
The company also announced a new multi-year AI cloud contract with an unnamed "leading frontier AI lab." Recent customers include Cohere, Perplexity, Figure AI, Fal AI and Higgsfield AI.
Microsoft Deal Highlights IREN's Bigger AI Bet
IREN's transformation is being anchored by a massive five-year Microsoft contract worth approximately $9.7 billion.
Earlier this month, Microsoft accepted Horizon 1, the first of four 50-megawatt liquid-cooled AI deployments being built at IREN's Childress, Texas campus. The infrastructure uses Nvidia GB300 systems, with Horizons 2 through 4 scheduled to follow.
IREN now says it has around $4 billion in contracted annualized run-rate revenue associated with its 2026 AI capacity, with approximately $1 billion already operating. Management says its 2026 capacity is largely sold out and discussions are already underway for a big portion of 2027 capacity.
That leaves investors weighing two very different stories: rising AI demand and billions of dollars in contracted future business against enormous capital requirements and the near-term cost of dismantling IREN's bitcoin-mining roots.
Thursday's selloff suggests Wall Street still wants to see that AI momentum translate into stronger reported earnings.
