IREN Sinks on Q4 Earnings Miss, Nvidia Partnership Deepens
IREN's share price took a significant hit on Friday after releasing its fourth-quarter report, which was filled with red ink. Despite this, the company has deepened its ties with Nvidia, a strategic partnership that extends beyond a typical customer-supplier arrangement.
The chip giant secured an option to acquire up to 30 million IREN shares at $70 apiece as part of the Mirantis acquisition. This five-year right would be worth up to $2.1 billion if fully exercised and sits alongside a $3.4 billion five-year GPU cloud contract, highlighting the close relationship between the two companies.
However, investors were not in the mood to celebrate the partnership, with IREN shares trading at around €30.32 on Friday, down 13 percent from the previous day. The stock has now fallen about 56 percent below its 52-week high of €68.61 reached in early November.
The company's earnings report laid bare the financial strain of its transition from a crypto miner to an AI infrastructure provider. Revenue for fiscal 2026 rose by 41.1 percent to $707 million, but IREN swung to a net loss of $702.6 million, a stark reversal from the $86.9 million profit posted in the previous year.