IREN Stock Plunges on Earnings Report Despite AI Revenue Milestone

IREN stock experienced a significant drop of over 13% on August 28 after releasing its earnings report. The company's AI revenue surpassed that of Bitcoin mining for the first time, with AI cloud services generating $70.5 million in quarterly revenue compared to $66.7 million from Bitcoin mining.

However, IREN's weak adjusted EBITDA and large impairment charges overshadowed this milestone. The company reported a net loss of $684 million, a significant increase from the $247 million loss in the same period last year.

The company's debt continued to grow, reaching over $7.4 billion. IREN announced a new $2.4 billion debt deal with Blue Owl, a top player in the private credit industry. This loan will be used for further deployments and expansions into the AI cloud infrastructure market.