IREN Revenue Reaches $228M as AI Cloud Overtakes Bitcoin Mining
IREN, formerly known mainly as a Bitcoin miner, reported $228 million in fiscal first-quarter 2027 revenue, with its AI Cloud segment contributing $200 million. The company's $4 billion AI revenue run-rate target has slipped into early 2027, according to company statements and coverage of its results.
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Revenue Mix Shifts Toward AI Cloud
IREN reported $228 million in revenue for the first quarter of fiscal 2027, reported November 5, 2026, with most of it now coming from renting out compute for AI workloads rather than from mining bitcoin. According to Crypto Briefing, AI Cloud revenue reached $200 million, up 182% from the prior quarter, while Bitcoin mining contributed $28 million. Total revenue rose 66% quarter over quarter, and the segment reported an 86% gross margin.
The two sources differ on the mining figure. Crypto Briefing reports mining revenue of $28 million, a decline it describes as sharp. The Defiant frames the change as a 58% fall in mining revenue, a figure that implies a prior-quarter base that Crypto Briefing's reporting does not state. The two outlets agree on the direction of the change and on the $200 million AI Cloud figure.
Profitability Remains Negative on a Net Basis
IREN narrowed its net loss to $263 million, according to Crypto Briefing, while adjusted EBITDA came in at $66 million. The gap between the two measures reflects the company's heavy spending on hardware and facilities. Adjusted EBITDA excludes depreciation, a significant cost for a business building out data center capacity, while the net loss captures it in full.
The company's annualized recurring revenue, or ARR, doubled to $1 billion. Crypto Briefing reports that roughly two-thirds of the contracted backlog is tied to investment-grade counterparties.
Revised Timeline for the $4 Billion Target
IREN is targeting more than $4 billion in AI revenue run-rate, which the company describes as fully contracted and funded. The Defiant reports that the target has moved into early 2027, and Crypto Briefing reports the timing was pushed from year-end 2026 to January, or potentially February, 2027.
Co-CEO Daniel Roberts attributed the delay to a customer-mandated network reconfiguration tied to frontier AI models, involving Microsoft, a major customer under multi-year agreements. Roberts also pointed to contracts signed after the quarter closed, including five-year commitments at approximately $22 million per megawatt and short-term contracts at $40 million per megawatt.
Mining Transition Timeline
The Defiant reports that IREN aims to substantially complete its transition away from mining by December. Neither source quantifies the remaining mining capacity or its expected revenue contribution after that date.
Why It Matters
For Traders
IREN's revised timeline for its $4 billion AI revenue target may affect how the stock responds to near-term delivery updates and any slippage in the January-to-February window.
For Investors
The shift from bitcoin mining to AI compute rental signals a structural change in how former miners may generate revenue, with contract backlog and counterparty quality now central to the thesis.
For Builders
Contract pricing of $22 million to $40 million per megawatt provides a reference point for teams modeling compute leasing economics against mining-era cost structures.
This article is for information only and is not financial advice. Read the full disclaimer.
