Iren Shares Tank as AI Pivot Costs Outweigh Cloud Milestone

Iren Limited (NASDAQ: IREN) saw its shares plummet in pre-market trading after posting a $684m net loss in its fiscal fourth quarter. The company, which is shifting from bitcoin mining to AI cloud computing, cited costs of the transition as the main driver behind the losses.

The quarterly revenue was $137.2m, down 5% sequentially, and included a non-cash impairment of $450.4m tied to decommissioning bitcoin-mining hardware. Adjusted EBITDA fell 68% quarter-on-quarter to $19.2m due to increasing staff costs and AI-cloud investments outpacing revenue recognition.

Despite the losses, Iren reported that its AI cloud revenue more than doubled to $70.5m, surpassing bitcoin-mining revenue of $66.7m for the first time and accounting for 51.4% of the quarter's total. The company has $4bn of contracted annualised run-rate revenue tied to its 2026 AI capacity, with only around $1bn currently operational.