IREN Stock After Q1 FY27 Earnings: AI Cloud Revenue Nearly Triples as Bitcoin Miners Pivot to AI

After the quarter IREN expanded its contract with an unnamed frontier AI lab and signed a five-year deal worth about $22 million a year per IT megawatt, with customer prepayments covering about 90% of the related GPU spending. That prepayment structure matters: it means the customer funds most of the hardware.

Benzinga reported that IREN shares rose after the release on the revenue beat, but the backdrop was rough: on November 5 a tech sell-off wiped about $2.5 trillion off US stocks, with AI cloud names such as CoreWeave and Nebius down 10% to 15% on fears that the midterm results could slow data center construction.

Three things to watch:

• The $4 billion ARR target. IREN now expects it by January 31, 2027 rather than year-end 2026, and said it could slip to the end of February, citing a customer-requested design change and supplier timing.
• Funding. GPUs are expensive. Prepayments covering 90% of GPU capex on the new deal reduce that risk; earlier contracts may not be as generous.
• Execution. Energising, cooling and fitting out new halls on time is now the whole story. Investors are punishing delays across the sector.

Compare IREN with the other neoclouds in our Nebius vs CoreWeave vs IREN comparison. This page does not give investment advice. Share prices move quickly; check a live quote and a licensed adviser before making any decision.

Bitcoin miners own the scarcest thing in AI: energised power with a grid connection. After the 2024 halving, mining income per unit of hashrate (hashprice) fell to about $29 per PH/s per day in Q1 2026, a five-year low, and Luxor's Hashrate Index put it at $32.86 on November 2, 2026, near breakeven for many operators. AI tenants pay far more for the same megawatts.

• Lease economics: long AI and HPC leases signed in 2025 and 2026 pay roughly $1.2 to $2.4 million per MW of IT load a year, by one industry analysis.
• Deal volume: Bernstein counts about 7 GW contracted by miners to hyperscalers, neoclouds and chipmakers across 19 deals, worth more than $135 billion; CoinShares counted $70 billion of contracts by the end of Q1 2026.
• Big examples: TeraWulf's 20-year lease of its Hawesville, Kentucky campus (about 401 MW) to Anthropic, worth about $19 billion; Hut 8's 15-year, 245 MW lease at River Bend; Core Scientific selling about $175 million of bitcoin to fund AI expansion.
• Valuation: CoinShares says miners with AI contracts trade at 12.3 times enterprise value to earnings versus 5.9 times for pure miners.

The risk is concentration: a handful of AI customers can renegotiate faster than a miner can switch back to bitcoin. We cover the conversion itself in bitcoin mine to AI data center conversion.

Energised power is the head start, not the finish line. Mining halls tolerate dust, heat and a single power feed; AI tenants need none of that. Our AI Build Configurator has a dedicated Bitcoin Miner Retrofit profile. Its default inputs (US national cost baseline, Canadian dollars, before accelerators):

The saving comes from land, the substation and an existing shell. The retrofit profile assumes a hosting model (the tenant brings the GPUs) at a default of C$175 per kW of IT load per month, about C$2.1 million per MW a year, in line with the lease range above. Pick your province or state in the free demo, choose Bitcoin Miner Retrofit, and the configurator recalculates the build cost, power bill and payback.