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IREN's AI Cloud Sales Nearly Tripled; the Stock Rose 20%
IREN's AI cloud revenue rose 182% to $200 million in the September quarter as bitcoin mining revenue fell to $28 million, and its shares rose 20% on Friday.
IREN started as a bitcoin miner. Its latest quarter shows how far it has moved. For the three months to September 30, reported on Thursday, November 5, revenue from renting AI computing capacity rose 182% from the previous quarter to $200 million, while bitcoin mining revenue fell to $28 million from $67 million, according to the company's filing with the SEC. Total revenue was $228 million, up 66%, and the AI cloud segment reported a gross margin of 86%.
The milestone behind the numbers is a customer. IREN said its first large data-centre phase, Horizon 1, went into service for Microsoft during the quarter, and it lists Nvidia and 13 other customers. Revenue backlog rose 22% to $20.3 billion, about two-thirds from investment-grade counterparties, and the company said operating annual recurring revenue had doubled to about $1 billion. Its target of more than $4 billion of contracted recurring revenue is now expected to be running by January 2027, possibly February, rather than by the end of 2026, after a customer-requested design change and supplier timing.
Building that capacity is expensive, and the balance sheet shows it. IREN still plans about $15 billion of capital spending in its 2027 fiscal year, of which $9 billion is covered by cash, committed GPU financing and customer prepayments, with the remaining $6 billion to come from other sources subject to market conditions. During the quarter it drew $2.36 billion from financing facilities and raised $498 million by selling shares; net debt rose to $4.43 billion from $216 million. The net loss was $263 million, narrower than the $684 million of the previous quarter.
Investors chose to focus on the revenue. The shares rose 20% to $21.64 on Friday, after falling about 17% on Thursday with the rest of the AI infrastructure trade, Yahoo Finance reported. That leaves them roughly where they were on Wednesday, which is a fair summary of the market's view: the business is growing as promised, but the price now depends on financing markets as much as on customers.
IREN is one of several miners turning their power contracts and sites into AI data centres, because electricity and grid connections have become the scarcest inputs in the AI build-out. The model works while customers sign long contracts and lenders fund the GPUs. The $6 billion still to be raised is the line to watch if credit for AI infrastructure keeps getting more expensive.
Sources: IREN quarterly results, Form 8-K exhibit (SEC EDGAR); Yahoo Finance — Stock market today, Friday November 6, 2026 (live coverage)