Shares of Bitcoin miner-turned-AI data-center operator IREN tumbled after the company posted a heavy fiscal 2026 loss tied to its conversion from crypto mining to AI infrastructure. The stock fell more than 8%—slipping 8.2% in after-hours trading to $37.19 from a $40.53 close—after IREN released quarterly and annual results showing large write-downs as it retires mining rigs and pivots to GPU-powered AI services. What the quarter showed - Total revenue for the quarter ended June 30 fell 5% to $137.2 million. - For the first time, AI cloud services overtook Bitcoin mining revenue: AI generated $70.5 million (up from $33.6 million the prior quarter) versus mining revenue of $66.7 million. AI now accounted for 51.4% of quarterly revenue. - Mining revenue dropped 40% from the prior quarter as IREN converted mining sites to support AI workloads. Losses, impairments and margins - Adjusted EBITDA plunged 68% to $19.2 million from $59.5 million, which IREN attributed to higher employee costs and heavy investment ahead of its AI cloud expansion. - The quarter included $450.4 million in impairments—mostly from retired mining hardware—and $127.2 million in write-downs and losses on equipment held for sale or disposed of. - For the full fiscal year, revenue rose 41% to $707 million, but $638.8 million in impairments pushed IREN to a $702.6 million loss, reversing a $86.9 million profit in fiscal 2025. Strategic pivot and financing - IREN reported $4 billion in contracted annualized run-rate revenue (ARR) scheduled to be operating by year-end. - The company secured $6.4 billion in GPU financing to fund its AI transition, including $3.6 billion at a 6% weighted-average interest rate tied to a five-year, $9.7 billion AI cloud agreement with Microsoft. That financing plus Microsoft’s prepayments covers about 96% of the related costs; an additional $2.8 billion will finance deployments for other customers. - In May IREN also inked a $3.4 billion AI cloud contract with Nvidia covering managed GPU services and forming part of a plan to deploy up to 5 gigawatts of AI infrastructure. Market and analyst context - Bernstein analysts expect IREN to phase out Bitcoin mining by 2030 as it replaces mining rigs with GPUs for AI workloads—an outcome underscored by this quarter’s impairments and revenue mix shift. - Co-founder and co-CEO Daniel Roberts framed the move as a response to surging demand for compute capacity: “Exponential AI consumption growth has fueled demand for compute capacity well beyond the available supply of infrastructure. IREN was built for this moment.” Why it matters to crypto audiences IREN’s results highlight a broader trend: some crypto miners are redeploying sites and capital to service booming AI demand. That transition can boost long-term revenue potential but also generates short-term pain—large impairments and negative earnings—as legacy mining assets are retired and replaced by expensive GPU infrastructure. Read more AI-generated news on: undefined/news