IREN Stock Plunges After $639M Mining Impairment

IREN Limited's stock took a hit of around 6% on Wednesday after it reported a $639 million impairment on its old Bitcoin mining equipment. The writedown led to a net loss of $702.6 million for fiscal 2026, overshadowing a 41.1% revenue increase to $707 million.

Despite the losses, IREN's AI Cloud business more than doubled its revenue to $128.8 million in 2026. The company emphasized that it is transitioning from Bitcoin mining to AI cloud infrastructure, with $4 billion in contracted annual recurring revenue and most of its 2026 capacity already sold.

Investors will be watching closely to see if IREN can close the gap between AI Cloud revenue and contracted ARR in upcoming quarters amid heavy capex and ongoing mining fleet retirement.