Bitcoin miner IREN has pushed back its target of generating more than $4 billion in annualised AI revenue from December 31, 2026, to January 31, 2027, with progress potentially extending into February. The company says funding coverage for the initial 0.3GW of IT capacity is separate from financing for its broader expansion: as of September 30, $6 billion of its remaining FY27 data-centre and GPU spending was still to be funded. The revised timeline highlights how equipment delivery, project commissioning and access to financing all factor into IREN’s AI buildout.
$6bn of remaining FY27 spending still needs funding
IREN’s spending figures use September 30 as the funding snapshot date. The company listed $15 billion in remaining FY27 capital expenditure: $5.8 billion in cash, including restricted cash; $3.2 billion in committed funding; and $6 billion yet to be secured. Cash and committed funding total $9 billion, the main sources identified for the spending plan.
That $9 billion does not mean all the money is already available. Committed funding includes GPU financing facilities that have not yet been drawn and customer prepayments due under contract. Access depends on conditions such as drawdown requirements, the release of escrowed funds and facility expiry dates. IREN’s statement that funding is covered applies to the remaining data-centre and GPU costs for the initial 0.3GW project supporting its revenue target—not the full expansion programme.
The additional $6 billion is intended to support wider expansion. Potential sources include GPU financing, customer prepayments, data-centre financing and corporate-level funding. Securing the money will depend on market conditions and the terms of existing debt. The spending is tied to later capacity additions, including IREN’s goal of reaching 0.8GW by the end of 2027.
GPU orders and customer advances support part of the buildout
IREN’s procurement has extended beyond the initial capacity plan. In its earnings materials, the company said it had ordered GPUs for an additional 0.3GW while retaining flexibility to adjust the pace of expansion. Placing equipment orders does not mean the facilities are already operational; construction still depends on financing and deployment schedules.
A five-year contract signed after September 30 is expected to generate about $22 million in annual revenue per IT megawatt. Its customer prepayment covers 90% of the GPUs’ expected capital cost. That figure applies to the GPUs for this contract, not to all customer agreements, and the contract’s prepayment was not part of the funds received in the September 30 snapshot.
Earlier financing arrangements show how funding can be released in stages as hardware is delivered and brought online. In August, Blue Owl Capital announced a total of $2.4 billion in financing for Mackenzie equipment: a $1.2 billion senior secured loan and $1.2 billion in senior secured notes. Procurement funding is to be provided in tranches linked to hardware delivery and commissioning.
Financing costs also vary by project. IREN said in its August earnings release that GPU financing associated with Microsoft carried a weighted average interest rate of 6%, excluding fees, while the Mackenzie financing had a fixed rate of 9%.
Target measures annualised operations, not recognised revenue
IREN’s management attributed the revised schedule to customer design changes and shifts in supplier delivery timing. The company now aims to reach the relevant level of operating revenue by January 31, 2027, with the timeline potentially extending to the end of February. IREN has stressed that the figure of more than $4 billion is an annualised revenue run rate, or ARR, rather than $4 billion in revenue already recognised over a year.
ARR is estimated using GPU-hour pricing, storage and other ancillary revenue, alongside assumptions about pricing and utilisation. Revenue contributions begin after facilities are commissioned and tested and customers have accepted them. As a result, reported revenue may be substantially below the annualised run rate. Progress will depend on equipment deliveries, customer acceptance and the release of funds subject to financing conditions.
AI services made up most of quarterly revenue
IREN reported total revenue of $228 million for the September quarter, including $135 million from AI cloud services, $65 million from AI cloud rentals and $28 million from Bitcoin mining. The two AI businesses generated about $200 million combined, up from approximately $71 million in the June quarter. All of the June quarter’s AI revenue came from AI cloud services; AI cloud rental revenue was zero.
The figures show AI-related operations accounting for a growing share of quarterly revenue, but quarterly revenue and the target of more than $4 billion in ARR are different measures. IREN’s next milestones include bringing the initial 0.3GW project online under the revised schedule and securing the remaining $6 billion needed for broader expansion.