Bitcoin miner IREN is planning a massive expansion of its AI cloud business, with $25 billion to $30 billion in capital spending targeted for fiscal 2027, according to a Bernstein note cited by The Block. Bernstein said the scale of that spending could unsettle the market, but argued that investors may be overlooking improving unit economics.
Analyst Gautam Chhugani wrote in a Friday client note that GPU capex payback periods have shortened to about two years from roughly three years under a 2025 Microsoft contract. IREN’s fiscal 2026 results, released Thursday, showed AI cloud services revenue rising nearly eightfold from $16.4 million to $128.8 million. Bitcoin mining revenue reached $578.2 million, up 19% year over year.
Total revenue increased from $501 million to $707 million, while net loss came in at $702.6 million. Bernstein said part of that loss reflected a $638.8 million impairment tied to retiring bitcoin mining hardware to support the AI cloud expansion. The firm also said IREN has $1 billion in operational cloud annualized run-rate revenue, $4 billion in contracted revenue, and that its 2026 capacity is largely sold out.
Bitcoin miner IREN plans to spend $25 billion to $30 billion in fiscal 2027 to expand its AI cloud business, according to research and brokerage firm Bernstein, as cited by The Block.
Bernstein said the scale of the planned capex could spook the market. Its analysts, though, argued that investors are missing the improvement in the business’s economics.
In a Friday note to clients, Bernstein analyst Gautam Chhugani said the payback period for GPU capital spending has fallen to about two years from roughly three years under a 2025 Microsoft contract.
IREN’s fiscal 2026 results, released Thursday, showed AI cloud services revenue climbing nearly eightfold to $128.8 million from $16.4 million a year earlier. Bitcoin mining revenue reached $578.2 million, up 19% year over year.
Total revenue rose from $501 million to $707 million. The company still posted a net loss of $702.6 million, partly reflecting a $638.8 million impairment after retiring bitcoin mining hardware to support its AI cloud expansion.
Bernstein said IREN currently has $1 billion in operational cloud annualized run-rate revenue and $4 billion in contracted revenue, with its 2026 capacity largely sold out.
Including an expected $700 million tied to an Nvidia contract in 2027, IREN’s total contracted cloud ARR stands at $4.7 billion.
Over the past 12 months, IREN has raised $19 billion through customer prepayments, GPU financing, convertible notes, and equity issuance.
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