Iren Shares Plunge 12.5% on $4 Billion AI Contract Announcement and $703 Million Annual Loss

Iren's shares plummeted by 12.5% after announcing $4 billion in new AI contracts and reporting an annual net loss of $703 million.

The decline, which wiped out roughly $1.8 billion from Iren's market capitalization, was attributed to investors reacting to the expenses involved in transitioning from bitcoin mining to AI infrastructure.

The company's quarterly revenue from AI Cloud doubled to $70.5 million, surpassing bitcoin mining revenue for the first time, but adjusted EBITDA dropped 68% sequentially to $19.2 million due to hiring and platform investment costs.

Iren secured $3.6 billion in GPU financing for its Microsoft deployment at an interest rate of 6%, with an additional facility of $2.8 billion set at a fixed 9% rate, bringing the total available cash, secured GPU financing, and prepaid customer funds to $14 billion.