IREN Stock Drops Amid Investor Skepticism Over AI Cloud Capacity

IREN Limited's stock price dropped 3.3% to $43.87 on Thursday, despite co-CEO Daniel Roberts' claim that the company had just passed its most challenging operational test.

Roberts shared a readout from investor meetings at Goldman Sachs technology conference in San Francisco, where he addressed concerns over the market's desire for delivered capacity rather than contract announcements.

The company, which started as a Bitcoin miner but has since shifted focus to building data centers and renting out computing power to AI model trainers, booked $70.5 million in AI cloud revenue for the June quarter and claims an operating annualized run rate of around $1 billion.

However, only a small portion of this contracted capacity has been delivered, leading to questions about the company's ability to scale its cloud business.