IREN Stock Plummets as Company Shifts Focus to AI Cloud Services
IREN stock plummeted 13% last Friday after its fiscal 2026 results showed a significant swing from profit to loss. Despite a revenue growth of 41.1% to $707 million, the company posted a net loss of $702.6 million.
The loss was mainly due to a non-cash impairment of $639 million tied to retiring Bitcoin mining hardware, which is expected to be completed by the end of December. However, buried within these numbers is a milestone: IREN's AI cloud revenue has surpassed its Bitcoin mining revenue for the first time, reaching $70.5 million compared to $66.7 million.
This marks a significant shift in the company's primary revenue stream from hardware-centric to AI cloud services. However, this pivot comes with a hefty price tag: management guided to $25 billion to $30 billion in capital spending for the year ahead, mainly for building out liquid-cooled data centers.