Iren Q3 Earnings; Stock Climbs on NVIDIA Deal then Falls as Bitcoin Mining Revenue Declines

Quick overview

IREN shares surged in after-hours trading after the company announced a major partnership with NVIDIA and expanded into Europe through a strategic data center acquisition, though investors remain cautious about execution and long-term scaling risks.

IREN Rallies After Major AI Infrastructure Announcements

IREN stock jumped more than 20% in after-hours trading on Thursday, climbing above the $70 level and moving closer toward the November high near $77. The sharp rally followed two major announcements that significantly strengthened the company’s position in the rapidly growing AI infrastructure market.

IREN Chart Daily – We Will See A Big Bullish Gap Tomorrow

Investor sentiment improved after IREN unveiled a strategic partnership with NVIDIA alongside a major European expansion deal, reinforcing the company’s ambitions to become a large-scale global AI and cloud infrastructure provider.

IREN’s Q3 FY26 results reflected the company’s ongoing transition away from traditional Bitcoin mining and toward AI cloud and data center infrastructure, as management continues repositioning the business around long-term demand for compute capacity.

The company reported total revenue of $144.8 million for the quarter, down from $184.7 million in Q2 FY26. Adjusted EBITDA also declined to $59.5 million from $75.3 million in the previous quarter, while net losses widened significantly to $(247.8) million compared with $(155.4) million previously.

Revenue Decline Driven by Mining Transition

The weaker quarterly performance was largely tied to lower Bitcoin mining activity and infrastructure conversion efforts.

Management said revenues fell by roughly $39.9 million due to lower average Bitcoin prices and the decommissioning of mining hardware ahead of GPU installations and customer billing. These headwinds were only partially offset by growth in the company’s AI Cloud business.

At the same time, cost of revenues declined by $25.9 million, mainly because reduced mining activity lowered electricity expenses.

The quarter also included substantial non-cash charges. IREN recorded impairments totaling approximately $(140.4) million, primarily related to retired mining equipment, alongside unrealized losses of $(23.7) million tied to capped call structures connected to convertible notes.

AI Infrastructure Strategy Gains Momentum

Despite the softer financial results, management emphasized operational progress tied to its AI infrastructure expansion.

Co-Founder and Co-CEO Daniel Roberts stated that global demand for compute power and data center capacity continues to outpace supply, creating a favorable environment for companies capable of rapidly deploying large-scale infrastructure.

During the quarter, IREN energized the Sweetwater 1 substation on schedule and continued advancing the Horizon 1-4 liquid-cooled data centers at Childress. These facilities are linked to the company’s reported $9.7 billion contract with Microsoft.

The company also continued converting existing data centers from ASIC mining hardware to GPU-based systems aimed at higher-value AI Cloud workloads.

NVIDIA Partnership and Acquisitions Expand Reach

One of the biggest highlights of the quarter was IREN’s recently announced 5-year, $3.4 billion AI Cloud agreement with NVIDIA.

Management described the partnership as further validation of IREN’s growing role within the global AI infrastructure ecosystem. The company believes its expertise in power sourcing, land development, and large-scale compute deployment positions it well to benefit from accelerating AI demand.

IREN also announced the acquisitions of Nostrum and Mirantis, moves designed to expand its international footprint and software capabilities. The deals add European data center sites, operational teams, orchestration software, and support infrastructure intended to broaden customer access over time.

European Expansion Adds New Growth Layer

Alongside the NVIDIA partnership, IREN also announced the acquisition of Spain-based data center developer Nostrum Group.

The transaction marks the company’s entry into the European market and expands its total power portfolio to approximately 5 gigawatts. The deal includes around 490 megawatts of secured grid-connected power capacity in Spain, along with a broader development pipeline and local operational teams.

Management believes the acquisition strengthens IREN’s execution capabilities across engineering, construction, and operations while accelerating the expansion of its cloud platform globally.

The move also diversifies the company geographically, reducing reliance on a single region while positioning it to benefit from increasing European demand for AI infrastructure and cloud computing capacity.

Conclusion

IREN’s latest quarter highlighted the growing pains associated with its transition from Bitcoin mining toward AI infrastructure and cloud services. Revenue and profitability weakened as mining operations were scaled back, while heavy impairment charges further pressured earnings.

However, the company continues making aggressive moves to establish itself as a major player in AI infrastructure through partnerships with NVIDIA and Microsoft, large-scale GPU deployment, and global expansion initiatives. While the long-term opportunity appears substantial, execution risks, capital requirements, and the pace of commercialization will remain critical factors for investors monitoring the company’s transformation.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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