IREN Bitcoin Mining Revenue Plunges 88% as AI Cloud Business Generates $200 Million
IREN reported an 88% year-over-year decline in Bitcoin mining revenue for the September quarter as the Nasdaq-listed company accelerated its transition toward artificial intelligence infrastructure. Mining revenue fell to $28 million from $233 million a year earlier, while its AI cloud business generated approximately $200 million and became its largest reported revenue contributor.
According to The company's latest 10-Q filing highlights a significant shift in its operating model, with fewer computing resources dedicated to Bitcoin mining and more capacity allocated to AI cloud services and high-performance data centers.
IREN Bitcoin Mining Revenue Falls as Hashrate Shrinks
IREN mined 402 BTC during the September quarter, down from 2,039 BTC in the corresponding period of 2025. The reduction coincided with a sharp decline in the company's average operating hashrate, which dropped from 45.3 exahashes per second to 8.8 EH/s.
Mining revenue also decreased 58% from the $67 million recorded in the preceding three-month period. IREN reported that it held no Bitcoin on its balance sheet as of September 30, reflecting its strategy of selling mined BTC daily rather than retaining cryptocurrency reserves.
The company plans to complete most of its data center transition by December 31, 2026. Management expects only immaterial Bitcoin mining operations to remain throughout 2027.
The restructuring follows IREN's March 2025 decision to stop expanding its Bitcoin mining operations. Since then, the company has increasingly focused on AI cloud computing and high-performance data center infrastructure.
AI Cloud Revenue Reaches $200 Million
IREN's expanding AI business helped drive total quarterly revenue to $228 million, a 66% increase from the preceding quarter. AI cloud services accounted for approximately $200 million, representing 182% growth quarter over quarter.
The results mark a major change in the company's revenue mix, with AI services now contributing substantially more than its Bitcoin mining operations.
Despite the increase in revenue, IREN recorded a net loss of $263 million for the quarter. That was an improvement compared with the $684 million loss reported in the previous three months.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $66 million from $19 million, reflecting the expansion of AI cloud operations and higher overall revenue.
IREN reported total assets of $20.6 billion, including approximately $6 billion in data center assets. Its customer relationships include Nvidia, Microsoft, and 13 additional clients, supporting the company's expansion into AI infrastructure.
IREN Shares Decline 17% on November 5
IREN shares fell approximately 17% during Thursday's trading session, closing at $18.03 on November 5. The decline occurred alongside broader selling pressure across technology and artificial intelligence stocks.
The market reaction came despite strong growth in AI cloud revenue. Investors were also assessing the sharp reduction in Bitcoin mining activity and the company's continued quarterly net loss.
IREN's results illustrate the scale of its shift away from Bitcoin mining toward AI infrastructure. The planned completion of most of the transition by December 31, 2026, remains an important milestone in its restructuring strategy.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.