IREN ' s performance in the latest quarter was lower than Wall Street ' s expected, and the market was more concerned about its underperformance, which led to a decline in stock prices. The company disclosed that, as at 30 June, it had received $137.2 million on a quarterly basis, which was less than the market forecast of approximately $157.1 million, and that the adjusted loss was 0.41 per share and less than the expected loss of approximately $0.34.

AI Cloud revenues exceed bitcoin mining

Despite overall performance constraints, IREN ' s income structure has changed significantly. The company disclosed that the AI cloud service quarterly income ring increased from $33.6 million to $7.5 million, representing more than 51 per cent of total receipts. During the same period, the revenue from mining in bitcoin fell from $111.2 million in the previous quarter to $66.7 million.

AI cloud operations are growing faster by year. IREN states that AI cloud revenues for the entire fiscal year nearly increased eightfold to $128.8 million, while the company ' s total annual revenue increased by 41 per cent to $707 million over the same period.

The Microsoft project continues to advance

At the same time, the company disclosed that a new multi-year AI cloud contract had been signed with an unnamed “Aheadline AI Laboratory”. Recent clients also include Cohere, Perplexity, Figure AI, Fal AI and Higgsfield AI.

Of even greater concern is the previous five-year Microsoft contract issued by IREN, which had a total size of approximately $9.7 billion. According to the company, Microsoft had received the Horizon 1 project earlier this month. This was the first project in the deployment of IREN ' s four 50-megawatt liquid cooling AI in Childress Park, Texas, with the Nvidia GB300 system used for the related infrastructure and the remaining Horizon 2 to Horizon 4 to be advanced.

The market is still watching the payoff.

IREN currently states that the contracted annual operating income associated with AI ' s capacity in 2026 is about $4 billion, of which about $1 billion is already operational. Management stated that capacity had been largely sold out in 2026 and that some capacity had been negotiated in 2027.

However, market differences were also clear. On the one hand, AI ' s rising demand and increased long-term contracts support the company ' s future revenues; on the other hand, large-scale expansion still requires higher capital inputs, while the process of shifting from mining to AI infrastructure from Bitcoin also slows down profit performance in the short term.

Additional information:IREN's recently disclosed customer list shows that its AI Cloud Business has covered model companies, reasoning platforms and robot-related businesses, and that the focus of business is shifting from a single mine-mining revenue to computing leasing and infrastructure services.