The former bitcoin miner says its pivot to AI data centres is paying off, even as investors baulk at the capital bill.
IREN (LSE: IREN) has told investors that annualised run-rate revenue from its AI cloud business has reached $4bn, with capacity for 2026 largely sold out, though shares in the Nasdaq-quoted group fell as markets weighed the scale of spending still needed to turn that pipeline into cash.
Revenue from AI Cloud Services jumped roughly eightfold to $128.8m in the year to 30 June, and management said around $1bn of the newly disclosed $4bn ARR figure is already generating income today, with the rest tied to contracts due to come online as new capacity is switched on.
The company, which began life as a bitcoin miner, booked a net loss for the year after taking around $639m of non-cash impairments as it decommissions mining rigs and converts sites to AI infrastructure. Adjusted earnings also softened in the final quarter on higher staff costs and platform investment, underlining the message to shareholders that the transition is expensive before it is profitable.
To bankroll the build-out, IREN has secured $3.6bn of investment-grade GPU financing at 6% linked to a Microsoft contract, plus a further $2.8bn including a $2.4bn facility led by Blue Owl and PIMCO. The group says cash, committed financing and prepayments now total around $14bn, and its data centre pipeline has grown to more than 5 gigawatts across the US, Canada, Australia and Spain, with customers including Cohere, Perplexity, Figure AI and a newly signed frontier AI lab.
Co-founder and co-chief executive Daniel Roberts said the group's 2026 capacity is largely sold out and that it has delivered the first of four liquid-cooled GPU deployments to Microsoft. Investors will now watch whether the huge financing commitments convert smoothly into the recognised revenue implied by the $4bn ARR figure, particularly after recent bolt-on acquisitions of Mirantis and Nostrum aimed at expanding into Europe.
This report is based on IREN Limited’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Microsoft Copilot on Unsplash.
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