The latest corporate disclosure by Bitcoin Minerals, IREN, revealed a net loss of $684 million as the mine continued to shift to AI cloud operations as at 30 June. As a result, IREN ' s share price fell by 8.2 per cent after Thursday, reporting US$ 37.19.

AI Cloud revenues exceeded mine for the first time

IREN AI earned $7.05 million during the quarter, up from $33.6 million in the previous quarter and, for the first time, more than $66.7 million in mining operations in Bitcoin. AI Cloud operations account for 51.4 per cent of total income for the current season.

Over the same period, total corporate income was $137.2 million, down 5 per cent from the previous quarter. Of these, mining revenues decreased by 40 per cent, mainly because some of the mines were converted to AI.

Impairment and expansion inputs drag on profits

The company disclosed that the adjusted EBITDA decreased from $5.95 million in the previous quarter to $19.2 million, or 68 per cent. IREN attributed this decline to rising staff costs and to the increase in AI ' s investment before the cloud expansion.

This quarter ' s loss includes $450.4 million in impairment of assets, mainly from decommissioned mines, and $127.2 million in write-offs and losses related to equipment pending sale or disposed of. IREN grew by 41 per cent to $707 million for the whole year, but due to the impairment of $638.8 million, the company turned into a deficit of $702.6 million for the year, compared with $869 million for the previous financial year.

Contract size signed $4.0 billion

According to IREN, the company has contracted an annual regular revenue of $4 billion and plans to be operational by the end of this year. As of 26 August, approximately $1 billion of the corresponding operations were already operational.

  • Companies have secured $6.4 billion in GPU financing
  • Of which $3.6 billion weighted average interest rate is about 6 per cent
  • Related funds correspond to a five-year Microsoft agreement

IREN states that the above-mentioned financing, together with the Microsoft advance payment, has covered 96 per cent of the cost of the related project. An additional $2.8 billion will be used for other client deployments.

Microsoft and Young Wida contracts support the transition.

In addition to Microsoft, IREN signed a $3.4 billion five-year AI cloud contract with Welda this May, which includes hosting GPU services. The agreement is also part of the cooperation between the parties in the deployment of a maximum of 5 Giwa AI infrastructure.

Additional information:Bernstein Analyst predicts that, as the mine is gradually replaced by GPU, IREN may have largely ended the Bitcoin mining operation around 2030.