Iren's AI Cloud Revenue Surpasses Bitcoin Mining, Stock Drops 8%

Iren's (IREN) AI cloud revenue for Q4 2026 reached $70.5 million, surpassing Bitcoin (BTC) mining revenue of $66.7 million for the first time. However, due to significant losses, the stock fell by 7-8%. Total revenue for the fourth quarter was $137.2 million, with adjusted EBITDA decreasing to $19.2 million. The net loss for Q4 was $684 million, of which $450.4 million was attributed to asset impairment related to the dismantling of Bitcoin mining hardware. Iren is reducing its Bitcoin mining equipment and transitioning to AI data centers. The annual recurring revenue (ARR) as of 2026 is projected to be $1 billion, with contracted ARR at $4 billion. Customer prepayments account for 45-55% of GPU capital expenditures, making immediate profit improvement from revenue expansion challenging. Market reaction has been negative, with Iren's stock dropping 8% in pre-market trading on Friday in the U.S. Total revenue for 2026 is expected to be $707 million, an increase from the previous year, with AI cloud service revenue at $128.8 million. Iren has stated that discussions regarding capacity for 2027 are ongoing.

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