IREN has contracted $11.4bn of leases
and recognised nothing

IREN's audited accounts carry about $11.4bn of contracted lease value for AI data centre capacity. Note 4 of the same filing says: "No lease revenue was recognized during the periods presented in the Consolidated Statements of Operations and Comprehensive Income (Loss)."

That sentence is the company. IREN's financial year ends 30 June, so the FY2026 10-K filed on 27 August covers the twelve months to 30 June 2026. Revenue was $707.0m, up 41 per cent. The net loss was $702.6m, against net income of $86.9m the year before. No 10-Q yet covers the quarter to 30 September, so nothing after June has been through an interim review.

Where the loss came from

An impairment of $638.8m, which the filing and the auditor's critical audit matter both attribute mainly to bitcoin mining hardware. Add fair-value losses on assets held for sale and on disposals and roughly $774m of asset value was written off in one year. Depreciation was $417.7m and stock-based compensation $205.0m, against $42.6m.

Adjusted EBITDA was $245.7m, down 8.9 per cent while revenue rose 41 per cent. The add-backs total $1,593m against a $702.6m loss, and the stock compensation added back is 83 per cent of the resulting figure. IREN also changed its definition this year to exclude a $111.8m debt conversion inducement expense, noting no effect on prior periods. There was no effect because the item did not exist before.

The mining business is being wound down

IREN mined and sold 6,075 bitcoin in FY2026 at $95,179 realised apiece. Mining electricity was $186.6m, so the marginal cash cost was $30,712 a coin, which looks like a 68 per cent margin. The segment note allocates only revenue and cost of revenue, so a fully loaded figure needs an allocation; applying mining's 81.8 per cent share of revenue to depreciation and overheads puts it near $150,099 — a loss of roughly $55,000 on every coin produced.

There is no treasury to argue about. The 10-K says plainly: "We held no Bitcoin on our balance sheet as of June 30, 2026." Coins are sold daily, so there is no pledged collateral and no fair-value election to discuss.

Signed, announced, and said out loud

The filings keep three categories apart better than the press releases do. Signed: Microsoft at roughly $9.7bn over an average five-year term, with the agreement filed under Item 1.01; NVIDIA at about $3.4bn; and $2.8bn of contracts with Prometheus, Perplexity and Together AI entered in July 2026, after the year end. Horizon 1 at Childress was delivered to and accepted by Microsoft in August 2026. Horizons 2 to 4 are targeted for the fourth quarter, with grace periods running into the second quarter of 2027.

Announced but not binding: a partnership to deploy "up to 5GW" of NVIDIA infrastructure "over time", with no committed megawatts and no schedule; and roughly 5GW of power held under "grid connection agreements, letters of agreement or equivalents". IREN added a risk factor this year saying some arrangements "are non-binding or subject to conditions".

Then the talk. The $4bn contracted run-rate headline sits in an Item 2.02 exhibit, furnished rather than filed, with the company's own caveat that "recognized revenue may be materially lower". Seven named AI customers appear in press releases and in no filing. A July release said IREN had "$7.6bn in cash and cash equivalents"; the balance sheet says $5,895.6m, with $1,723.9m more in restricted cash that lenders control. A footnote to that release does say so; the headline sentence does not.

The bull case, and the bill

AI cloud revenue grew from $16.4m to $128.8m and overtook mining in the final quarter. Customers have already paid $1,842.5m of deferred revenue, which is why operating cash flow was positive $2,100.4m. The audited backlog is $5.1bn of performance obligations plus the $11.4bn of lease value.

Against that: $13.6bn of capital commitments fall due within twelve months of the balance sheet date. Weighted average shares rose 47.3 per cent, the anti-dilutive overhang is 146.1m shares, and because every FY2026 period was loss-making, diluted equals basic and none of it touches reported earnings per share. The equipment has arrived; the revenue starts when customers accept it.

Sources, all retrieved 12 October 2026 from SEC EDGAR, CIK 0001878848: the FY2026 Form 10-K filed 27 August 2026 for the year to 30 June 2026, the Form 10-Q for the quarter to 31 March 2026, and the Form 8-K filings of 27 August, 13 August and 20 July 2026. Figures are in US dollars; the financial year ends 30 June. Contested: the fully loaded cost of about $150,099 a bitcoin is our own allocation of depreciation and overheads on mining's 81.8 per cent share of revenue, because the segment note allocates neither. Fourth-quarter figures are an unreviewed residual. The press release figures cited sit in furnished exhibits rather than filed ones, and the auditor's report states impairment of $631.7m where the note states $638.8m. Not a recommendation to buy, sell or hold any security.