IREN Plans $25 Billion to $30 Billion AI Expansion Raises Investor Concerns

Bitcoin mining company IREN plans to invest $25 billion to $30 billion in expanding its AI cloud business in fiscal year 2027, which may raise concerns among investors. Bernstein analyst Gautam Chhugani pointed out that the payback period for GPU capital expenditures has shortened from about three years under the Microsoft contract in 2025 to about two years. IREN's fiscal year 2026 performance shows that AI cloud service revenue grew nearly eightfold from $16.4 million the previous year to $128.8 million, while Bitcoin mining revenue reached $578.2 million, a year-on-year increase of 19%. Total revenue rose from $501 million to $707 million, but the company recorded a net loss of $702.6 million, partly reflecting a $638.8 million impairment due to the retirement of Bitcoin mining hardware to support AI cloud expansion. IREN currently has an annualized run rate revenue of $1 billion from its operating cloud and $4 billion in contract revenue, with its 2026 capacity nearly sold out. It is expected that $700 million related to the Nvidia contract in 2027 will bring IREN's total cloud ARR to $4.7 billion. Over the past 12 months, IREN has raised $19 billion through customer prepayments, GPU financing, convertible bonds, and equity issuance.

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