IREN’s AI Buildout Faces a $25 Billion Spending Test

IREN reported fiscal 2026 revenue of $707 million, up 41.1% year over year, as it expands from Bitcoin mining into AI cloud services. The company announced $4 billion in contracted annualized run-rate revenue for its 2026 capacity, with $1 billion operational as of late August.

That contracted figure is not the same as recognized revenue. IREN’s AI cloud revenue reached $128.8 million in fiscal 2026, while Bitcoin mining contributed $578.2 million. Turning the remaining contracts into sales depends on GPU deployments and customer acceptance.

IREN delivered its first 50-megawatt Horizon deployment to Microsoft in August. Three more phases are scheduled for delivery in the fourth quarter of calendar 2026. Management is targeting about 300 megawatts of cumulative IT capacity in 2026 and 800 megawatts in 2027. The company also has multiyear agreements with Cohere, Perplexity and Figure AI.

The expansion carries significant costs. IREN expects fiscal 2027 capital expenditures of $25 billion to $30 billion, and is targeting another $8 billion in GPU financing and customer prepayments. It reported a fourth-quarter fiscal 2026 net loss of $684 million, largely tied to noncash impairment charges from retiring Bitcoin mining equipment.

IREN shares traded at $35.44, down 8.41% since the previous close, as of 18:05 UTC on Oct. 8. The article reported a 7.3% decline over the preceding three months, while pointing to funding needs and the pace of revenue conversion as risks to the company’s expansion.