IREN (IREN) reported record fiscal first-quarter earnings as it expanded further into AI cloud computing and revenue from bitcoin (BTC) mining surged.

Net income in the period ended Sept. 30 rose to $384.6 million, reversing a year-earlier loss of $51.7 million, the company said on its website. Total revenue rose 355% to $240.3 million, with bitcoin mining accounting for $232.9 million, 50-times the year-earlier figure.

The Sydney, Australia-based company is one of a broader trend of bitcoin miners repurposing their energy and data center assets to serve the booming AI compute market. Earlier this week, Mara Holdings ( MARA ) , which is following a similar path, reported a quarterly profit vs loss and revenue that rose 92% year over year.

The companies, which have experience in running large-scale data centers and negotiating supplies of cheap power, are pivoting their ASIC-based mining facilities to GPU-powered AI cloud services.

For IREN, the standout development going forward is the five-year, $9.7 billion AI cloud contract with Microsoft ( MSFT ) announced on Monday. The deal includes phased deployments at its Childress site through 2026 and a 20% prepayment, with an expected $1.9 billion annualized run-rate revenue (ARR) contribution. Combined with new multiyear contracts with Together AI, Fluidstack and Fireworks AI, the company is targeting $3.4 billion in AI Cloud ARR by the end of next year, supported by the planned expansion to 140,000 GPUs.

Infrastructure development continues at pace. The company plans to transition its British Columbia (160MW) facilities from ASICs to GPUs end-2026, while accelerating construction of liquid-cooled Horizon data centers (200MW) at Childress (750MW). At the Sweetwater Hub (2GW), key substations are scheduled for energization over the next wo years.

“IREN continues to execute with discipline, delivering record results and meaningful progress in our AI Cloud expansion,”  co-founder and co-CEO Daniel Roberts said in a statement.

IREN shares slid more than 12% on Thursday. They are up 2% in Friday's pre-market trading.