IREN Shares Plunge as Weak Bitcoin Price Hits Earnings
IREN Limited (NASDAQ: IREN) shares took a hit after its worse-than-expected fourth-quarter financial results. BTIG analysts attributed part of the shortfall to a weaker Bitcoin price, noting that IREN is winding down its Bitcoin mining operations.
The company's new multi-year agreement with a frontier AI lab adds to approximately $2.8 billion in previously announced AI cloud contracts. This has pushed IREN's 2026 annual recurring revenue (ARR) target to about $4 billion, up from around $1 billion currently generated.
BTIG analysts expect additional multi-year contracts spanning three to five years to be signed at higher pricing levels. Management guided fiscal 2027 capital expenditures to a range of $25 billion to $30 billion to support the $4 billion ARR target.