IREN shares rebounded sharply on Friday after the former Bitcoin miner reported that its artificial intelligence cloud revenue had nearly tripled, even as its mining income collapsed and a key revenue target slipped into next year.

AI cloud revenue reached $200 million in the quarter ended 30 September, up 182% from $71 million in the previous quarter, the company reported on 5 November. Total revenue rose 66% to $228 million, beating the $221 million analysts expected. AI cloud services contributed $135 million and cloud leasing $65 million, after the first phase of IREN's Horizon data centre went into service for Microsoft.

Bitcoin mining revenue fell 58% to $28 million, from $67 million in the June quarter, as IREN removed mining equipment to make room for AI infrastructure. Bitcoin production dropped to 402 coins from 2,039 a year earlier, and operating hashrate fell from 45.3 to 8.8 exahashes per second.

Shares fell, then bounced back

IREN reported a net loss of $263 million, narrower than the $684 million loss in the previous quarter, while adjusted earnings before interest, tax, depreciation and amortisation rose to $66 million from $19 million. Its contracted revenue backlog reached $20.3 billion, up 22%.

The shares fell 17% to $18.03 on 5 November, before the results were released, then surged about 18% on Friday as investors digested the AI figures.

There was a setback too: IREN moved its target of more than $4 billion in annualised AI revenue from the end of 2026 to January 2027, possibly February, after Microsoft asked for design changes to network infrastructure. Co-founder and co-chief executive Daniel Roberts said AI cloud revenue had "nearly tripled to $200 million, and operating ARR doubled to a billion". IREN aims to substantially complete its exit from large-scale Bitcoin mining by 31 December.