IREN Shares Drop Amid Rising Costs from Transitioning Bitcoin Mining Sites to AI
Bitcoin miner IREN reported a $684 million loss in fiscal 2026 as it shifts operations toward artificial intelligence (AI) cloud services. The company's shares fell over 8% after the results were released, with mining revenue declining by 40% due to site conversions for AI use. In contrast, AI-related revenue reached $70.5 million in Q1 of fiscal 2026 — surpassing Bitcoin mining income and accounting for more than half of IREN's quarterly earnings. The company attributed its financial struggles partly to impairment charges from retired mining equipment and increased employee costs tied to expansion plans. Despite a year-over-year revenue increase, the $638.8 million in impairments led to an overall loss compared with profitability in 2025. IREN has secured significant GPU financing agreements — including a major deal with Microsoft covering nearly all of its AI infrastructure costs and another partnership with Nvidia for managed services.
Tickers: $IREN
Topics: AI data centers Bitcoin mining revenue decline share price drop