IREN Limited is converting scarce grid-connected power into contracted GPU cloud, and the June quarter was the first period in which that new line out-earned bitcoin mining. AI Cloud Services produced $71 million in the quarter. Bitcoin mining produced $67 million. The equity now trades on whether those contracts become recognized revenue before the mining cash engine is fully switched off. That is a conversion test, not a growth test, and it is the only question that matters at the current multiple.
Horizon One at Childress was delivered to and accepted by Microsoft in mid-August. That hall is the first of four liquid-cooled buildings under a five-year cloud contract disclosed at nearly $10 billion. Acceptance is the mechanism that starts converting prepaid capacity into billable service, and it is also the reference design that NVIDIA later certified as Exemplar Cloud on the latest rack-scale platform. Without that acceptance, the contracted annualized run-rate revenue figure of $4 billion remains a booking, not a cash engine. A booking that large is only as good as the next three halls that still have to clear the same customer.
The income statement still does not look like a contracted platform of that scale. Full-year AI Cloud revenue was $129 million. Total sales were $707 million. A $639 million impairment on retired mining hardware drove the company to a $703 million net loss. Adjusted earnings before interest, taxes, depreciation and amortization still printed $246 million for the year. The June-quarter print of that same metric fell to $19 million as staffing and platform cost arrived ahead of the cloud ramp. The market is being asked to look through a year of accounting wreckage to a contracted book that is only partly live. That ask is reasonable only if the next three halls bill on the same terms as the first.
The next test is mechanical rather than narrative. Horizon Two is in commissioning and the remaining two Childress halls target delivery before calendar year-end, while management aims to finish reallocating roughly 380 megawatts of mining halls by the same date. If those halls energize on that calendar, operating annualized run-rate revenue has a path from the $1 billion already live toward the $4 billion already sold. If they slip, the equity is left holding a miner that has already written off its fleet.