IREN's latest quarterly performance fell short of Wall Street's expectations, and the market is more concerned about its profitability under pressure, leading to a decline in its stock price. The company disclosed that its quarterly revenue as of June 30 was $137.2 million, which is lower than the market's forecast of around $157.1 million; the adjusted loss per share was $0.41, also falling short of the expected loss of about $0.34.

AI Cloud revenue exceeds Bitcoin mining revenue

Despite overall performance under pressure, the revenue structure of IREN has shown significant changes. The company disclosed that the quarterly revenue from AI's cloud services increased from $33.6 million to $70.5 million, accounting for over 51% of total revenue. During the same period, Bitcoin mining revenue decreased from $111.2 million in the previous quarter to $66.7 million.

Looking at the full year, AI's cloud business grew even faster. IREN indicates that throughout the fiscal year AI, cloud revenue nearly increased by 8 times to reach $128.8 million; the company's total annual revenue also increased by 41% to $707 million.

Microsoft project continues to advance

The company also disclosed that it has signed a new multi-year cloud contract with an unnamed "leading AI laboratory." Its recent clients also include Cohere, Perplexity, Figure AI, Fal AI, and Higgsfield AI.

What attracts more attention is the five-year contract with Microsoft previously announced by IREN, with a total scale of approximately $9.7 billion. The company stated that earlier this month, Microsoft had already received Horizon for one project. This is the first of four 50-megawatt liquid-cooled AI deployments that IREN is building in the Childress campus in Texas. The relevant infrastructure uses the Nvidia GB300 system, and the remaining Horizon to Horizon projects will be pursued subsequently.

The market is still observing the realization of profits.

IREN Currently, the contracted annual operating revenue related to the production capacity of AI in 2026 is approximately $4 billion, of which about $1 billion has already been put into operation. Management stated that the production capacity for 2026 has been largely sold out, and negotiations for some of the production capacity for 2027 have also begun.

However, the divisions in the market are also clear. On one hand, the increasing demand for AI and the growth in long-term contracts provide support for the company's future revenue; on the other hand, large-scale expansion still requires a significant capital investment, and the transition from Bitcoin mining to the infrastructure of AI is also dragging down profit performance in the short term.

Additional information:The recently disclosed customer list by IREN shows that its AI cloud business has covered model companies, inference platforms, and robotics-related enterprises. The focus of its business is shifting from solely mining revenue to computing power leasing and infrastructure services.