The miner booked a $638.8 million impairment retiring rigs to clear halls for AI tenants. Its $4 billion contracted run rate is still $3 billion above what is actually operating.
IREN will decommission the bitcoin mining operation that produced $578.2 million of its revenue last year, and it means to finish the job by the end of December.
The company's FY2026 results, filed with the SEC on 27 August, show mining supplying 81.8 per cent of $707 million in total revenue. AI cloud services contributed $128.8 million, up from $16.4 million a year earlier. Both lines grew. IREN still posted a net loss of $702.6 million, against an $86.9 million profit the year before.
Most of that swing sits in one non-cash line. The company booked a $638.8 million impairment, charged largely against retired miners and against retrofitting air-cooled halls in British Columbia and Childress for direct-to-chip liquid cooling. No money left the building. What the charge does is put an accounting price on machines written off before the business meant to replace them had entered service, which is a fair description of IREN's whole position at the moment.
Operating expenses reached $1.534 billion, up from $324.7 million. Beyond the impairment, depreciation added roughly $236 million as Childress ran heavier and more GPUs went in, while selling, general and administrative costs rose by about $313 million, more than half of that stock-based compensation. In July the two co-chief executives were each awarded 9,099,328 units of restricted stock. Power ran to roughly 27 per cent of total revenue.
At 30 June the company had about 380MW of installed mining capacity running roughly 23.2 EH/s, against 40MW of AI cloud. Operating capacity across both came to 420MW. The pipeline behind it runs to 5GW: 2.75GW across three Texas sites, 1.6GW in Oklahoma, 800MW at Bundey in Australia, 300MW at Badajoz in Spain and 160MW in British Columbia. The distance between what is energised and what is drawn on a map is why this transition takes a year rather than a quarter.
The contracted figures are what investors are actually trading on. As of 26 August, IREN reported $1 billion of operating annualised run-rate revenue against $4 billion contracted for its 2026 capacity, and it wants the larger number operational by 31 December. ARR here means contracted GPU pricing multiplied by a full year of hours. It is not GAAP revenue, and the company says plainly that recognised revenue may come in materially lower. Under its own 10-K, revenue generally starts only once a site is built and energised, the equipment installed and commissioned, performance testing complete and the customer has accepted the capacity. Each of those is somewhere a quarter can go missing.
Microsoft and Nvidia together account for a substantial majority of that contracted revenue. The Microsoft agreement, signed in November 2025 at $9.7 billion, saw its first phase accepted in August; remaining phases were targeted for delivery through the final quarter of this year, with contractual grace periods running into the start of Q2 2027. Nvidia's five-year, $3.4 billion contract dates from May. Newer names spread the roster without changing the concentration, and IREN's filing warns that the loss of committed capacity from any significant customer could hit results and cash flows.
Financing is the other clock running. IREN secured around $19 billion this year through prepayments, GPU financing, convertible notes and equity, and chief financial officer Anthony Lewis told the earnings call it is targeting roughly $8 billion more in GPU financing and prepayments. Not all of that money is cheap. A Mackenzie facility of up to $2.4 billion carries a 9 per cent fixed rate, maturing 30 months after each staged funding date. Delay doesn't pause interest. The company holds $5.89 billion of cash and equivalents plus $1.7 billion restricted, most of the latter earmarked for Microsoft-related GPU capital expenditure.
None of this is unusual any more; IREN is simply doing it faster than most. Riot leased 191 megawatts of a bitcoin site to Anthropic. Bitdeer sold 121 megawatts of Norwegian compute for $4.7 billion. NYDIG sold its trading desk to become a power company. Bitcoin's hashrate has now spent more than 300 days below its October 2025 peak, the longest drought in a decade, and this is why. The arithmetic is easier to accept when every listed US miner was losing money at $80,000 bitcoin.
IREN liquidates its bitcoin daily and always has, converting the output straight into fiat to cover operating and capital costs. For one more quarter, those daily sales are still what pays for the data centres being built to replace them.
