Bitcoin Miner IREN Shares Fall as AI Conversion Costs Mount
IREN shares fell 8.2% after the company reported a fiscal 2026 net loss of $702.6 million, versus an $86.9 million profit the prior year. Quarterly loss included $450.4 million in impairments and $127.2 million in write-downs on retired mining hardware. Revenue fell 5% to $137.2 million, but AI cloud services jumped to $70.5 million and overtook Bitcoin mining revenue of $66.7 million for the first time, making up 51.4% of quarterly revenue. Mining revenue dropped 40% as sites were converted for AI use. Adjusted EBITDA fell 68% to $19.2 million. IREN said it has $4 billion in contracted annualized run-rate revenue expected by year-end. It also secured $6.4 billion in GPU financing, including funding tied to a $9.7 billion Microsoft AI cloud deal, and signed a $3.4 billion AI cloud contract with Nvidia.
