IREN’s reported gross Bitcoin mining hardware balance fell from approximately $1.136 billion at June 30, 2025 to $597.0 million at June 30, 2026, a reduction of about 47.4% year over year as the company decommissions miners and redirects data-center capacity toward AI Cloud Services.
The percentage does not mean every IREN ASIC lost 47% of its market value. It compares the company’s reported gross mining-hardware balances at the two fiscal year ends. Purchases, retirements, disposals and accounting classifications can all change that balance.
Mining hardware falls from $1.14 billion to $597 million
IREN’s 2026 annual report lists gross mining hardware of $596.988 million, compared with $1.135584 billion one year earlier. That is a decline of approximately $538.6 million, or 47.4%.
The same filing says IREN began decommissioning Bitcoin mining hardware during fiscal 2026 and reallocating power and data-center capacity toward AI Cloud Services. The company said it aims to substantially complete that transition by December 31, 2026.
$638.8 million in impairment charges
IREN recorded $638.8 million of asset impairment charges for fiscal 2026, primarily related to Bitcoin mining hardware as well as certain IT equipment, electrical equipment and data-center infrastructure. In the fourth quarter alone, the company reported $450.4 million of non-cash impairments, primarily related to decommissioning Bitcoin mining hardware as sites are converted for AI Cloud growth.
IREN also reported a $110.6 million decrease in the fair value of Bitcoin miners classified as assets held for sale. The annual filing says those miners were no longer in use, were actively marketed for sale and were considered highly probable to be sold.
This is an infrastructure shift, not a hardware loan
The miners are physical assets IREN owned. The accounting changes are not the result of IREN lending the machines to another company. IREN says assets were displaced as it retrofits mining-oriented data centers in Childress and British Columbia and develops additional liquid- and air-cooled capacity for AI Cloud Services.
IREN still reported approximately 23.2 EH/s of installed Bitcoin mining capacity representing about 380 MW as of June 30, 2026. The company said it continues to operate miners at certain data centers while transitioning capacity toward AI.
IREN’s AI conversion accelerates
The hardware reduction is part of a broader change in how IREN monetizes its power and data-center footprint. Its FY26 results showed AI Cloud Services revenue of $128.8 million, up from $16.4 million in FY25, while Bitcoin mining revenue was $578.2 million.
For Bitcoin miners, IREN’s numbers illustrate how valuable energized data-center capacity has become outside mining. ASIC fleets remain purpose-built for SHA-256 mining, but the electrical infrastructure, land, substations and cooling systems around them can potentially support much higher-value compute after substantial retrofitting.
Sources
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