Iren Slumps by 50%, But Melvin Sees AI Growth Potential

Iren, an asset that recently peaked at $70 in June, has dropped by 50% since then. Its latest earnings report revealed a significant decline in Adjusted EBITDA from $59.5M to $19.2M.

The main concern was the collapse of Bitcoin mining revenue, which dropped 40%, while AI Cloud revenue jumped 110%. This led to Iren shutting down its Bitcoin mining capacity faster than its new AI infrastructure can start generating revenue.

Melvin, lead portfolio analyst at Milk Road PRO, remains bullish on Iren. He points out that the same megawatt of power makes Iren significantly more money when used for AI instead of Bitcoin mining. The AI business is already showing real traction, with $1B in AI Cloud ARR operating today and $4B in contracted ARR tied to its 2026 capacity.

Melvin's plan is to hold onto Iren, watch the delivery schedule closely, and wait for the AI revenue to show up. He views panic-selling as locking in a loss while the underlying AI thesis remains intact.