IREN Mining Revenue Drops 58% as AI Hits $200 Million
Company pushes back $4 billion annual revenue target to 2027 due to Microsoft infrastructure requests.
IREN reported a 58% decline in bitcoin mining revenue during the latest period. This performance reflects the company's strategic shift toward cloud computing for artificial intelligence. Revenue from this AI segment more than doubled to reach $200 million.
The goal of hitting $4 billion in annual recurring revenue has been pushed from 2026 to early 2027. This change follows a request from Microsoft to reconfigure and upgrade network infrastructure. The objective is to allow 200 megawatts of capacity to support next-generation AI models.
The company's net loss narrowed to $263 million compared to the $684 million recorded in the previous period. Total revenue rose 66% quarter-over-quarter to reach $228 million. This figure exceeded the average analyst estimate of $221 million.
The firm plans to invest $15 billion in capital expenditures by the end of the fiscal year. The revenue backlog grew 22% to reach $20.3 billion. About two-thirds of this amount involves investment-grade counterparties.
The market is watching the AI infrastructure sector with caution as investors become more selective. Concerns focus on the ability of cash-heavy companies to service debt in a high-interest rate environment. IREN expects to complete its transition toward an AI focus by December.
Spotted an error? Write to suporte@criptoico.com.br.
