Key takeaways
- IREN stock rebounds as AI revenue nearly triples
- AI cloud now generates 88% of quarterly sales
- Microsoft delays and $15 billion spending remain risks
IREN stock surged approximately 18% on November 6 after the former Bitcoin mining specialist reported a 182% quarterly increase in AI cloud revenue, demonstrating how rapidly its business is shifting toward artificial intelligence infrastructure.
According to IREN's November 5 earnings release, AI cloud revenue reached $200 million during the quarter ended September 30, up from $71 million three months earlier. Total revenue climbed 66% to $228 million.
IREN AI Revenue Surges as Bitcoin Mining Shrinks
IREN's latest results reveal a dramatic change in its revenue composition.
AI cloud services generated approximately 87.7% of quarterly revenue, compared with roughly 52% during the June quarter. Bitcoin mining revenue, meanwhile, declined from $67 million to $28 million.
The transition follows an earlier shift toward AI infrastructure, when rising network competition encouraged mining companies to reconsider how they used electricity and data center capacity.
IREN reported an 86% gross margin for its AI cloud segment, while adjusted EBITDA increased from $19 million to $66 million.
However, the company remained unprofitable under standard accounting measures, recording a $263 million net loss, compared with $684 million in the previous quarter.
The figures also reverse the market narrative surrounding IREN's previous earnings disappointment, when shares declined despite AI revenue overtaking Bitcoin mining for the first time.
Microsoft Delays AI Deployment as Backlog Reaches $20.3 Billion
The company reported $20.3 billion in contracted revenue backlog, a 22% sequential increase, with approximately two-thirds associated with investment-grade counterparties.
IREN also said its target of more than $4 billion in annualized recurring revenue is fully contracted and funded.
However, achieving that level has been pushed from year-end 2026 to January 2027, with a possible extension into February.
The delay resulted from customer-requested network design changes and supplier timing affecting Microsoft infrastructure deliveries. IREN said the adjustment carries no financial penalties.
The development highlights the difference between contracted revenue and immediately available cash, an issue Coinpaper previously examined when comparing IREN with CoreWeave and Nebius.
Microsoft's infrastructure demand also faces broader scrutiny after the company declined an optional Nscale expansion, although that earlier Coinpaper coverage concerned a separate UK project.
Can IREN Sustain Its AI-Fueled Stock Recovery?
IREN plans approximately $15 billion in additional capital expenditure during fiscal 2027.
Management identified $9 billion in existing cash, financing commitments and customer prepayments, with another $6 billion dependent on future financing arrangements and market conditions.
The funding challenge reflects a broader transformation of Bitcoin mining stocks, which increasingly trade according to AI infrastructure expectations rather than Bitcoin prices alone.
Earlier TeraWulf, Riot and Hut 8 rallies showed investors rewarding access to electricity and computing facilities.
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Maya Bennett
Maya Bennett is a financial journalist with experience covering cryptocurrency, stocks, and broader market trends. Her work focuses on Bitcoin, major digital assets, equity markets, monetary policy, and the economic developments driving investor sentiment. She specializes in turning fast-moving market stories into clear, concise reporting.
https://coinpaper.com/38438/bitcoin-miner-iren-stock-surges-18-as-ai-cloud-revenue-jumps-182-to-200-million
