IREN Stock Crashes Amid AI Revenue Surge

IREN's stock fell by over 6% in premarket trading after the company released its financial results. The decline came despite reaching a significant milestone, with AI revenue exceeding Bitcoin mining operations.

The firm's AI cloud solution saw revenue rise from $33 million last year to $70.5 million in the latest quarter. Its total revenue dropped to $137 million from $144 million in the same period last year due to lower Bitcoin mining revenue and impairments jumping sharply to over $450 million.

The company's cash burn rose to $303 million, with long-term debt surging to $7.4 billion during the quarter. This heavy borrowing may lead to further debt and dilution as IREN continues to fund its growth.