IREN Stock Plummets as Financial Woes Deepen Amid AI Milestone

IREN stock has fallen over 6% in premarket trading after its latest financial results showed rising impairments, cash burn, and long-term debt. Despite reaching a major milestone with AI revenue surpassing Bitcoin mining operations, investors are concerned about the company's financial health.

The company reported that impairments jumped to $450 million in the quarter, up from $140 million last year, while its total loss rose to over $684 million. Cash burn also increased to $303 million, despite spending $2.1 billion in the period. Long-term debt surged to over $7.4 billion.

However, IREN's AI revenue did reach a record high of $70.5 million last quarter, outperforming its Bitcoin mining operations. The company's CEO said 'This year, that founding thesis became tangible... Exponential AI consumption growth has fueled demand for compute capacity well beyond the available supply of infrastructure.'

Despite this positive news, analysts predict IREN's stock may drop further to $29, citing technical indicators such as a move below the 50-day EMA and a rolling over RSI.