Company Reports

IREN is making progress with its artificial intelligence cloud transition. Quarterly AI cloud revenue of $71 million surpassed bitcoin mining revenue of $67 million for the first time. It also landed a multiyear deal with a frontier AI lab and delivered the 50-MW Horizon 1 data center to Microsoft.

IREN is a leading bitcoin miner that operates one of the world’s largest bitcoin mines. The low energy cost and outstanding efficiency enable the company to produce bitcoins at a lower cost than other miners. More recently, generative AI has been growing faster than any other new technology we have seen before. Bitcoin miners like IREN quickly realized that artificial intelligence is a better and bigger opportunity to leverage their cheap power supply. Thanks to its experience in low-cost, high-efficiency compute, IREN is quickly pivoting from bitcoin mining to AI cloud. As of fiscal 2026, the company is retrofitting its bitcoin mines in British Columbia and West Texas into AI data centers. It also secured additional sites in Texas and Oklahoma for future AI cloud expansion.

Bloomberg reported on July 1 that Meta is planning to enter the cloud infrastructure market by selling excessive artificial intelligence computing power that may put the company in direct competition with neocloud firms. Shares of CoreWeave, Nebius, and IREN were down 14%, 17%, and 5%, respectively.

IREN is a leading bitcoin miner that operates one of the world’s largest bitcoin mines. The low energy cost and outstanding efficiency enable the company to produce bitcoins at a lower cost than other miners. More recently, generative AI has been growing faster than any other new technology we have seen before. Bitcoin miners like IREN quickly realized that AI is a better and bigger opportunity to leverage their cheap power supply. Thanks to its experience in low-cost, high-efficiency compute, IREN is quickly pivoting from bitcoin mining to AI cloud. As of fiscal 2026, the company is retrofitting its bitcoin mines in British Columbia and West Texas into AI data centers. It also secured additional sites in Texas and Oklahoma for future AI cloud expansion.

IREN's third quarter was affected by lower bitcoin prices and the capacity transition to artificial intelligence cloud. Total revenue fell 22% sequentially to $145 million, but AI cloud revenue roughly doubled to $34 million. GPU capacity ramp-up led to a quarterly operating loss of $239 million.

IREN is a leading bitcoin miner that operates one of the world’s largest bitcoin mines. The low energy cost and outstanding efficiency enable the company to produce bitcoins at a lower cost than other miners. More recently, generative AI has been growing faster than any other new technology we have seen before. Bitcoin miners like IREN quickly realized that AI is a better and bigger opportunity to leverage their cheap power supply. Thanks to its experience in low-cost, high-efficiency compute, IREN is quickly pivoting from bitcoin mining to AI cloud. As of fiscal 2026, the company is retrofitting its bitcoin mines in British Columbia and West Texas into AI data centers. It also secured additional sites in Texas and Oklahoma for future AI cloud expansion.

We initiate coverage of IREN, one of the world's largest bitcoin miners, which is transitioning into an AI data center operator. The company recently reached a 5-year, $9.7 billion deal with Microsoft to provide 200 megawatts of GPU compute capacity, starting in 2026.