IREN Bitcoin Mining Revenue Falls 58% as AI Cloud Hits $200M

IREN bitcoin mining revenue fell 58% in the quarter ended September 30, to $28 million from $67 million. AI cloud revenue nearly tripled to $200 million. CoinInsider and BigGo Finance both report the figures from IREN’s first-quarter fiscal 2027 results. The result matters to ASIC owners because IREN says it is switching mining hardware off and writing down what it holds for sale.

IREN bitcoin mining revenue, quarter on quarter

Total revenue was $228 million, up 66% and ahead of the $221 million analyst average, per BigGo. AI cloud made up $135 million of services and $65 million of leases. That is about 88% of revenue. The net loss narrowed to $263 million from $684 million. Adjusted EBITDA was $66 million.

Mining is the opposite story. IREN mined 402 BTC in the quarter, against 2,039 BTC a year earlier. Average operating hashrate fell to 8.8 EH/s from 45.3 EH/s, according to BigGo. That is a cut of about 36.5 EH/s in a year. Installed mining capacity stood near 7.9 EH/s at quarter-end.

What IREN says about its miners

IREN aims to substantially complete its shift from mining to AI by December 31. Limited mining will continue through 2027, and it does not expect further material investment in mining hardware, per CoinInsider. The company generally sells mined bitcoin daily and held none on September 30.

CoinInsider also reports a $21 million decline in the value of mining equipment held for sale, plus a $2 million impairment, mostly on mining hardware. In short, the company is already marking down machines it plans to sell. We do not know which models or how many. Neither report says, so we will not guess.

The AI side of IREN has its own problems

IREN pushed its target of more than $4 billion in annualized revenue from year-end to January 31, 2027, possibly February. Co-CEO Daniel Roberts blamed a customer-requested design change and supplier timing. It still needs about $6 billion of extra funding for its fiscal 2027 plan, per CoinInsider. BigGo says the stock closed down 17% at $18.03 on November 5. We covered the earlier quarter in our piece on IREN’s AI revenue overtaking mining.

Miner math: what miners like IREN leaving does to your margin

Here is the live maths on November 6. Bitcoin is $75,710 and the network is 1039 EH/s, so hashprice is about $33.06 per petahash per day. That is what one PH/s of hashing earns before power.

Numbers are profit per day after electricity, at the three power prices shown. Break-even is the most you can pay per kilowatt-hour before the machine loses money. Specs are the manufacturer ratings; network data comes from mempool.space. Try your own power price in our free bitcoin mining profit calculator. See what these machines really sold for in our used ASIC miner price index. Want to run the same numbers on a machine you can buy today? See our used ASIC miners, or buy several at once through bulk lots.

If another 3% of network hashrate switches off as large miners convert to AI: the break-even power price on an S19k Pro rises from 6.0 to 6.2 cents per kilowatt-hour. At 8 cents, daily profit goes from -$1.28 to -$1.16.

The blunt answer for ASIC owners

Two effects pull in opposite directions. First, fewer machines chasing the same block reward helps hashprice. Network hashrate is near 1039 EH/s per mempool.space. Second, a large miner selling used machines adds supply to the used market and can push resale prices down. We think buyers with cheap power gain from both. Sellers with expensive power should check the break-even column above before holding on.

If you want to sell, see our we buy used miners page. If you want to buy, browse all miners or our bulk used ASIC miners page.

-Nick
ING Mining

This is general information, not financial advice. Crypto is volatile, and exchanges can fail. Please do your own research.

How this story was made: drafted with the help of AI tools from public sources, then edited by Nick Squires. See our editorial policy. Spot an error? Email ns@ingmining.com.