$2.8 Billion Boost for IREN as it Shifts Focus to AI Cloud Services

IREN, a data centre firm, has secured $2.8 billion in new financing to support its pivot towards artificial intelligence (AI) cloud services. This strategic shift comes despite the company reporting a quarterly loss of $684 million due to transition costs associated with retiring bitcoin mining hardware.

The financing package includes a $2.4 billion facility led by asset management firm Blue Owl and bond giant Pacific Investment Management Company, which will be used to purchase AI chips for its new service offerings.

IREN's shares fell more than seven per cent in extended trading following the announcement of the fourth-quarter net loss. However, revenue for the quarter declined only 27% to $137.2 million, slightly above analysts' average estimate of $136.8 million.