IREN is accelerating its transformation from a Bitcoin mining-focused business into an AI cloud infrastructure company. Amid rapid growth in AI cloud revenue, most of its computing capacity available for supply in 2026 has already been secured under contract. Large-scale GPU financing and data center expansion are also proceeding in parallel. IREN announced its fiscal year 2026 annual results and business status on the 27th.

■ $4 Billion in Annualized Contract Revenue... 2026 Capacity 'Mostly Sold Out'

IREN recently signed multi-year contracts with a major frontier AI lab, and also expanded contracts with Cohere, Prometheus, Perplexity, Figure AI, Fal AI, and Higgsfield AI, among others.

The company's annualized revenue based on 2026 contracts stands at around $4 billion. Currently realized annualized revenue in actual operation was tallied at $1 billion. However, IREN explained that this figure is an operating metric rather than revenue under U.S. GAAP, and actual recognized revenue may be lower.

Future supply capacity is also being depleted rapidly. According to IREN, most of its 2026 data center capacity has been sold. For 2027 supply, final-stage negotiations are underway with new customers across a significant portion, and discussions with customers and financial institutions are also ongoing for 2028 capacity.

■ Rising Contract Prices... IT Capacity Revenue Exceeds $20 Million per MW

Contract prices are also on an upward trend. For recently signed 3-year contracts, revenue per MW of IT capacity has surpassed $20 million, and the company estimates an investment payback period of about 2 years. In some ongoing negotiations, prices of around $25 million per MW are being discussed. Customer prepayments also account for 45-55% of GPU capital expenditure.

■ 'Horizon 1' Delivered to Microsoft... 5GW Global Pipeline Secured

The project with Microsoft is also progressing smoothly. IREN delivered Horizon 1, the first of four 50MW-class liquid-cooled data centers in the Childress area of Texas, to Microsoft. Horizon 2 has entered commissioning, while Horizon 3 and 4 are in the final stages of construction, targeting delivery in the fourth quarter of 2026.

A global data center expansion plan was also presented. IREN currently holds a data center development pipeline exceeding 5GW, targeting cumulative IT capacity supply of approximately 0.3GW in 2026 and 0.8GW in 2027. Development is also being pursued in Mackenzie, Canal Flats, and Prince George in Canada; Sweetwater, Texas and Kiowa, Oklahoma in the United States; Bundaberg, Australia; and Badajoz, Spain.

■ GPU Financing Massively Expanded... Up to 96% of Capital Expenditure Covered

Funding for GPU investment has also been expanded. IREN secured $3.6 billion in investment-grade GPU financing related to the Microsoft contract, and including customer prepayments, it can cover approximately 96% of the GPU capital expenditure involved.

In addition, the company secured $2.8 billion in additional GPU financing for non-investment-grade customers. Of this, $2.4 billion is financing led by Blue Owl and PIMCO, which will be deployed for the expansion of air-cooled data centers in the Mackenzie area. The company explained that this financing alone can cover approximately 90% of the related GPU investment costs.

■ AI Cloud Revenue Grows 8-Fold... Net Loss of $700 Million Recorded

The results showed simultaneous growth in the AI cloud business and contraction in the existing Bitcoin mining business. IREN's fiscal year 2026 revenue was $707 million, up from $501 million the previous year. AI cloud services revenue reached $128.8 million, roughly 8 times higher than the previous year's $16.4 million. Bitcoin mining revenue recorded $578.2 million.

However, net income showed a large loss. The fiscal year 2026 net loss was tallied at $702.6 million. This largely reflects $638.8 million in non-cash impairment losses incurred in the process of retiring Bitcoin mining equipment and converting existing data centers for AI cloud use.

Adjusted EBITDA was $245.7 million, down from $269.7 million the previous year. The company explained that increased investment in personnel and platforms ahead of the AI cloud business expansion also contributed to cost burdens.

■ Vertical Integration of Power-Sites-GPUs-Software... Expansion into North America, Europe, and APAC

IREN is now shifting the core of its business toward data centers, computing, and software services for AI training and inference. The company plans to expand its business across North America, Europe, and the Asia-Pacific region based on a vertically integrated platform spanning power, sites, data centers, GPUs, and software.

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