Crypto
IREN Stock Slumps as AI Milestone Fails to Offset Heavy Debt and Impairments
IREN stock plummeted by over 6% in premarket trading after releasing its financial results. The AI-focused company reached a significant milestone, surpassing Bitcoin mining revenue for the first time.
The AI cloud solution generated $70.5 million in revenue last quarter, up from $33 million in the same period last year. However, this growth was overshadowed by impairments of over $450 million and cash burn of $303 million. The company's long-term debt surged to $7.4 billion.
The increased borrowing and impairments raise concerns about IREN's financial health. The stock remains below the 50-day EMA, with a downward RSI trend indicating potential pressure on the price. A possible move towards $29 is predicted after the gap fill.