IREN's bitcoin mining revenue drops 58% as firm plans full exit by year-end

IREN (IREN) reported bitcoin Bitcoin (BTC) mining revenue of $28 million in the three months ended Sept. 30, which is a 58% quarter-over-quarter decline from $67 million and an 88% drop from $233 million a year earlier.

According to the company's 10-Q filing, IREN mined 402 BTC during the period, compared with 2,039 BTC in the same quarter last year. Average operating hashrate fell to 8.8 EH/s from 45.3 EH/s year-over-year. IREN held no bitcoin on its balance sheet as of the end of September as it liquidates mined bitcoin daily.

"We continue to operate Bitcoin miners at certain of our data centers while we transition this data center capacity toward AI Cloud," IREN wrote in the filing. "We aim to substantially complete this transition by December 31, 2026, with immaterial Bitcoin mining operations expected to continue through calendar year 2027."

AI transition

IREN, which launched in 2018, announced in March last year that it will stop expanding its bitcoin mining operations and shift its focus to AI and high-performance computing through AI cloud services and data center businesses. Competing bitcoin miner firms MARA and CleanSpark have also turned to the AI infrastructure business.

Consequently, the company's quarterly revenue rose 66% sequentially to $228 million, driven by AI cloud revenue of around $200 million, which is up 182% from the prior quarter. The company posted a net loss of $263 million, narrower than the $684 million loss in the previous quarter, while adjusted EBITDA rose to $66 million from $19 million.

IREN said it has $20.6 billion in total assets, including $6 billion of data center assets, with assets and revenue underpinned by customer contracts with Nvidia, Microsoft, and 13 other customers.

The firm's Nasdaq-listed shares fell 17% on Thursday to close at $18.03, in line with a broader sell-off across AI and tech stocks.