IREN Bitcoin (BTC) Mining Revenue Falls 58% to $28 Million in Q1 FY27

IREN Reports Q1 FY27 Results

Bitcoin (BTC) miner IREN has reached the closing stage of its exit from crypto mining. In its fiscal 2027 first quarter results release, published on November 5, the company reported AI cloud revenue of $200 million for the July-September 2026 period, up 182% quarter on quarter, while Bitcoin mining revenue fell 58% to $28 million. Total quarterly revenue came to $228 million, a 66% increase from the $137 million recorded the previous quarter.

The release splits the AI figure into about $135 million of cloud services revenue and $65 million of cloud leasing revenue. AI cloud now represents roughly 87.7% of total revenue, with mining down to 12.3%. One quarter earlier the mix was inverted: mining contributed $67 million and AI cloud $71 million, so the revenue base flipped inside three months. The income statement of a company once defined by its mining fleet now arrives mainly from GPU cloud services and data-center leases rather than block rewards.

Profitability still trails growth. IREN posted a net loss of $263 million for the quarter, a marked improvement on the $684 million loss of the prior quarter but still far from break-even. Adjusted EBITDA rose from $19 million to $66 million.

The company's own disclosure attributes the mining contraction to a deliberate decision: power and data-center capacity once dedicated to proof of work computation has been redirected to AI cloud services, and the release is explicit that this reallocation, rather than any decline in the Bitcoin (BTC) price, drove the mining revenue fall. The share reaction was violent in both directions. IREN fell 16.95% on November 5, closing at $18.03, then rebounded 20.02% on November 6 to a close of $21.64, a swing that coincided with a broad repricing of US AI-linked technology stocks as investors weigh data-center financing pressure, delivery schedules and the credibility of projected cash flows.

From 2,039 BTC to 402

The 10-Q filed with the U.S. Securities and Exchange Commission (SEC) quantifies the withdrawal. IREN mined 402 Bitcoin (BTC) in the quarter, against 2,039 BTC in the same period a year earlier. Average operating hashrate fell from 45.3 EH/s to 8.8 EH/s, a reduction of about 80.6%. Measured year over year, mining revenue dropped 88%, from $233 million to $28 million. The company also discloses that it typically sells mined coins the day it produces them and held zero BTC on its balance sheet at the end of September.

IREN restated in the SEC filing that it plans to substantially complete the move from Bitcoin mining to AI cloud services before December 31, 2026. A full shutdown is not on the table this year: the company expects to retain a small mining operation through 2027 whose financial impact will be immaterial. Decommissioning of mining hardware began in fiscal 2026, with power and data-center infrastructure reconfigured to serve GPU demand.

Commercial contracts underpin the pivot. The Horizon-1 data center serving Microsoft is operational and carries Nvidia Exemplar Cloud certification. AI cloud contracted backlog reached $20.3 billion, 22% higher than the previous quarter. The $4 billion annualized recurring revenue (ARR) target is backed by contracts and financing, but the capacity deployment behind it, originally due by the end of 2026, has slipped to January 2027 and possibly late February after customer design changes and supplier delivery adjustments. IREN notes that neither the ARR figure nor the backlog is realized revenue or cash flow.

The retreat sits inside a wider reshuffle of Bitcoin mining sector economics: mining income moves with network difficulty, the subsidy set at each halving and power costs, while AI data centers trade that exposure for multi-year enterprise contracts and heavy GPU, cooling and networking capital. Peer TeraWulf shows a comparable slide, with TeraWulf Bitcoin mining revenue falling 69% in its own Q3 filing, so IREN is not alone in the contraction. The same AI-linked repricing has also rippled through the coin itself, with our related coverage tracking Bitcoin's test of $76,000 resistance after the AI regulation selloff.

IREN Stock Back Above $21

COINOTAG data shows the IREN line last quoted at $21.85, up 0.78% over 24 hours, after a range of $21.53 to $22.02. Our composite scoring rates $21.45 as the strongest support below the market at 88/100, with $23.57 the strongest resistance overhead at 74/100; the daily RSI sits at 37.1, the MACD signal is bullish and the trend reads sideways. The investment question has changed shape: with mining at 12.3% of revenue and zero Bitcoin (BTC) held, quarterly results will track AI contract delivery rather than the coin's direction. The ARR target and the backlog are commitments, not cash flow, and the January 2027 deployment deadline, at the latest the end of February, is the next dated test of whether either converts.