Shares of IREN Limited fell about 8.12% in after-hours and overnight trading after the Bitcoin miner turned AI-infrastructure company reported its fiscal fourth-quarter and full-year 2026 results following the market close on Thursday, August 27, 2026.
The drop came after a positive regular session: IREN closed at $40.53, up 2.4% from the prior day, before the earnings release sent the stock lower. As of 07:24 UTC on August 28 (03:24 EDT), Yahoo Finance quoted the shares around $37.24 in overnight trading, down 8.12%.
The Results: A Revenue Miss And $684 Million Net Loss
IREN reported Q4 FY2026 revenue of $137.2 million, down about 5% from the prior quarter and roughly 27% lower than the $187 million it posted a year earlier.The company reported a net loss of $684 million for the quarter. A significant portion of the loss came from non-cash charges related to IREN’s transition away from Bitcoin mining.
IREN recorded $450.4 million in impairments on decommissioned mining hardware and a $102.1 million decline in the fair value of mining hardware held for sale. On an adjusted basis, IREN reported a loss of about $0.41 per share, while adjusted EBITDA was $19.2 million, compared with $59.5 million in the previous quarter.
The company ended June 30, 2026, with about $7.6 billion in cash, including $1.7 billion in restricted cash.
The AI Pivot Passed A Milestone
The same report showed AI Cloud revenue reached $70.5 million, or 51.4% of total revenue, meaning AI, not mining, is now the majority of IREN’s business for the first time. AI Cloud revenue more than doubled sequentially and grew roughly eight-fold year-on-year, to $128.8 million for FY2026.
IREN also said it has about $4 billion of contracted annual recurring revenue (ARR) for 2026 capacity, with roughly $1 billion already operating, and chief executive Daniel Roberts said the company’s 2026 capacity is “largely sold out.”
IREN pointed to Horizon 1, the first of four liquid-cooled GPU deployments delivered to Microsoft this month, and said it had broadened its customer base to include hyperscalers, enterprises and AI labs, with improving contract pricing. The company also cited billions in committed GPU financing and customer prepayments that it argues reduce near-term funding and dilution risk.
Why The Stock Fell
The stock reaction came as IREN reported lower quarterly revenue. IREN shares had also risen ahead of the earnings release, raising the possibility that some of the company’s AI expansion expectations were already reflected in the stock price.
At the same time, the company’s quarterly revenue remained affected by the planned reduction of its Bitcoin-mining operations, while much of the expected growth from its AI infrastructure investments has yet to appear in reported revenue.
IREN has said its larger AI Cloud ramp, including Microsoft capacity and an additional 50,000 GPUs, is weighted toward the second half of calendar 2026 and into 2027. The company expects a significant portion of related revenue to be recognized in the March 2027 quarter.
That timing means the company’s contracted AI pipeline has not yet translated fully into quarterly revenue.
The Crypto Mining-to-AI Shift
IREN’s results highlight the ongoing shift among some Bitcoin-mining companies toward AI and high-performance computing. The company said it is reallocating infrastructure and power capacity that were previously used for Bitcoin mining toward GPU-based AI Cloud services. That transition can reduce mining capacity in the near term while increasing capital requirements for data centers, GPUs and related infrastructure.
The $450.4 million impairment recorded during the quarter illustrates one financial impact of that transition, as IREN decommissioned mining hardware as part of its move toward AI infrastructure.
IREN’s strategy is increasingly tied to long-term AI Cloud contracts, data-center construction, GPU deployment and customer utilization, in addition to the economics of Bitcoin mining.
What’s Next
IREN said it expects to exit December 2026 with more than $4 billion of ARR under contract, with much of the associated revenue recognized in the March 2027 quarter. It also pointed to late-stage discussions covering 2027 capacity and early talks on 2028. The next reported quarter (Q1 FY2027) will be the first test of whether the AI ramp begins converting the pipeline into revenue, even as the company guides to higher near-term operating spending. The Crypto Times will cover those results as they are released.
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