IREN Limited (NASDAQ: IREN) announced that its revenue for the quarter ended March 31, 2026 decreased to $144.8 million from $184.7 million in the prior quarter as a weak Bitcoin economy collided with continued AI cloud capacity build-out.
The decrease was $39.9 million and was related to a decline in the average price of Bitcoin and old mining machines being retired before new GPU systems started charging customers in full.
The conclusion was even uglier. IREN reported a net loss of $247.8 million. In comparison, the company’s second quarter 2026 net loss was $155.4 million. Adjusted EBITDA decreased from $75.3 million to $59.5 million. Costs also decreased by $25.9 million. This was mainly due to lower electricity usage due to reduced mining activity.
During the quarter, we incurred non-cash impairment charges of $140.4 million primarily due to retired mining hardware and $23.7 million of unrealized losses related to capped calls related to our convertible notes.
IREN replaces older mining hardware with Blackwell GPUs under new NVIDIA deal
IREN has signed a five-year, $3.4 billion AI Cloud agreement with NVIDIA Corporation (NASDAQ: NVDA) for air-cooled Blackwell GPUs. The company plans to locate its hardware within 60MW of Childress’ existing data center space, with customer additions expected to begin in early 2027.
“The world is structurally under-computed, and the bottleneck is the data center and GPU capacity available,” said Daniel Roberts, co-founder and co-CEO of IREN. Daniel then said the quarter included work across power, land, data center construction and large-scale computing provision.
The company also entered into a broader 5GW partnership with NVIDIA. The contract covers data center design and infrastructure built around NVIDIA systems across IREN’s global power infrastructure. IREN also granted NVIDIA a five-year right to purchase up to 30 million common shares at $70 per share. This could generate up to $2.1 billion in revenue, subject to all conditions including regulatory approvals being met.
Daniel said IREN delivered power to the Sweetwater 1 substation as scheduled, expanded Childress’ Horizon 1-4 liquid cooling sites, and continued the data center conversion from ASIC mining machines to GPUs. These Childress sites support IREN’s $9.7 billion contract with Microsoft Corporation (NASDAQ: MSFT).
IREN stock rose about 10% to $62.50 in after-hours trading Thursday. NVIDIA’s stock price remains almost unchanged. The partnership will primarily be centered around IREN’s 2GW Sweetwater campus in Texas. This is no small potato, as 1 GW of electricity can power about 750,000 homes at a time.
IREN adds Spain, Mirantis and other power sites after Bitcoin mining
IREN said its expansion plans to 480MW in 2026 are on schedule. Horizon 1-4 are expected to be operational by the end of the year, and their operating capacity is already fully contracted. The company has contractual annual recurring revenue of $3.1 billion and hopes that number will reach $3.7 billion by the end of 2026.
Looking ahead to 2027, IREN is moving forward with construction, aiming for 1,210MW. This includes Childress Horizons 5-6, more air-cooled Childress spaces, and the first phase of Sweetwater 1. Starting in 2028, the company expects Sweetwater and Kiowa generation capacity to increase across its 5GW secured power portfolio. He also said the Australian project was close to a connectivity agreement.
IREN has also agreed to acquire Spanish data center developer Ingenostrum SL (commonly known as Nostrum). The contract gives IREN its first European platform, adds approximately 490MW of secure grid-connected power and brings a development pipeline of over 1GW.
Spain has added access to renewable energy, grid links, AI policy support and permit conditions that qualify the company for large-scale data center projects.
“This acquisition establishes IREN’s strategic platform in Europe,” Daniel said. He further added, “Nostrum adds high-quality sites, an experienced local team, and a leading position in the attractive market for AI infrastructure.”
The Nostrum team brings experience across development, engineering, construction, and operations. IREN also acquired Mirantis, adding software, orchestration, customer support, and operational tools to its AI cloud platform.
The company said short-term capital expenditures should be funded with $2.6 billion in cash as of April 30, with operating cash flow, GPU financing, data center financing, and enterprise-level financing efforts already underway.
