Bitcoin mining companies accelerate the transformation of AI, IREN (NASDAQ: IREN) officially enters the final stage of bidding farewell to mining!

According to the company’s announcement on November 5Latest quarterly financial report, AI cloud revenue reached US$200 million from July to September 2026, a quarterly increase of 182%. On the other hand, Bitcoin mining revenue dropped by 58% to US$28 million.

IREN expects to substantially complete its business transformation by December 31 this year and shift data center resources to AI computing. Despite the strong growth of its AI business, the company still lost US$263 million in a single quarter. The stock price plummeted nearly 17% after the financial report was released, but rebounded by 20.02% on November 6, showing that the market still has clear differences in its transformation prospects and capital investment.

AI cloud revenue surges by 182%, leaving only 12% of overall revenue from mining

According to IREN's latest financial report as of September 30, 2026, the company's total quarterly revenue reached US$228 million, an increase of 66% from US$137 million in the previous quarter. Among them, AI cloud business revenue jumped from US$71 million in the previous quarter to US$200 million, accounting for approximately 87.7% of total revenue. In comparison, Bitcoin mining revenue dropped from US$67 million in the previous quarter to US$28 million, a quarterly decrease of approximately 58%, and its proportion of total revenue has dropped to 12.3%.

This means that IREN’s revenue structure has been reversed. The company that used to focus on mining now mainly generates revenue from AI computing services and data center leasing. It is worth noting that the $200 million in AI revenue includes approximately $135 million in cloud service revenue and $65 million in cloud rental revenue, not all of which come from the same type of GPU cloud services.

Mining revenue drops by 88% annually! Quarterly production of only 402 BTC left

The shrinkage of the mining business is even more obvious. According to IREN’s 10-Q filing with the U.S. Securities and Exchange Commission (SEC), the company mined only 402 BTC in the latest quarter, far lower than the 2,039 BTC in the same period last year. The average operating computing power during the same period also dropped from 45.3 EH/s to 8.8 EH/s, a decrease of approximately 80.6%.

If compared with the annual growth rate, Bitcoin mining revenue plummeted to US$28 million from US$233 million in the same period last year, a decrease of 88%.

This mainly reflects IREN's initiative to reduce the scale of mining and reallocate the power and data center capacity originally used for mining to the AI ​​cloud business, rather than simply being caused by the decline in Bitcoin prices.

IREN also stated that the company typically sells mined Bitcoin on a daily basis and held zero BTC on its balance sheet at the end of September.

The transformation was roughly completed at the end of December, and a small amount of mining will still remain in 2027

IREN reiterated in its latest SEC filing that it plans to substantially complete the transformation from Bitcoin mining to AI cloud business by December 31, 2026.

However, the company did not announce that all mining machines will be shut down immediately at the end of the year, but it is expected that a small amount of mining operations may still be retained in 2027, which will have little impact on the overall financial performance. IREN has begun dismantling some mining equipment and reconfiguring power and data center infrastructure in fiscal 2026 to support GPU computing needs.

For traditional mining companies, this change is of great significance. The revenue model that originally relied on BTC price, mining difficulty and electricity cost is gradually turning to be driven by enterprise AI computing power contracts, GPU usage and data center services.

Microsoft AI Data Center goes online, annualized revenue target of more than US$4 billion extended to next year

IREN’s transformation is already supported by real commercial contracts. The company said that its Horizon 1 data center that provides services to Microsoft has been put into operation and has obtained Nvidia Exemplar Cloud certification. As of the latest quarter, the company's AI cloud business' contract backlog revenue reached $20.3 billion, an increase of 22% from the previous quarter.

IREN also stated that the contract annualized revenue (ARR) target of more than US$4 billion has been supported by contracts and financial arrangements, but the capacity deployment originally scheduled to be completed by the end of 2026 has been postponed to January 2027 due to customer design changes and supplier delivery time adjustments, and may be delayed to the end of February at the latest.

It should be noted that $4 billion in ARR is the annualized revenue target after future deployment is completed, and $20.3 billion is contract backlog revenue. Neither of them can be directly regarded as the company's realized revenue or cash flow.

AI revenue soars but still loses US$263 million, IREN stock price reverses sharply in two days

Despite the rapid growth of its AI cloud business, IREN still faces high capital expenditure and profit pressure.

The company's net loss in the latest quarter was US$263 million. Although it was significantly narrower than the loss of US$684 million in the previous quarter, it still failed to achieve an overall profit; adjusted EBITDA rose from US$19 million to US$66 million.

In terms of stock price, IREN fell 16.95% to close at $18.03 on November 5; however, it quickly rebounded 20.02% on November 6, with the latest closing price reaching $21.64. This wave of violent fluctuations coincides with the recent repricing of U.S. AI technology stocks, and also reflects that the market is closely evaluating the financing pressure and delivery progress of large-scale data center construction, and whether future cash flows can be realized as scheduled.

IREN's transformation also reflects that Bitcoin mining is facing new business options.Traditional mining revenue is highly affected by Bitcoin price, network computing power, block rewards and electricity costs; relatively speaking, AI data centers can increase revenue predictability through long-term enterprise contracts, but require investment in larger GPU, cooling, power and network infrastructure capital.

IREN has successfully made the AI ​​business its main source of revenue, but huge future contracts, continued losses and data center deployment schedules show that the transformation is not without risks. In the future, the focus of investors' evaluation of IREN may no longer be just the rise or fall of BTC, but whether the AI ​​contract can be delivered as scheduled, and whether the rapidly growing revenue can be transformed into sustained profits and free cash flow.

〈Bitcoin mining company IREN almost completely stopped mining at the end of the year! AI revenue surged 182%, mining revenue plummeted 58%, and stock prices rebounded 20% in a single day〉This article was first published inBlock Guest》.