IREN Stock Slumps on Q4 Revenue Miss Despite AI Cloud Growth
IREN Limited's stock price fell by 7.23% in after-hours trading on Wednesday, following the release of its Q4 financial results. The company reported revenue of $137.2 million, which was below the expected $157.14 million. However, AI Cloud revenue reached a record high of $70.5 million, making up 51.4% of total revenue for the first time.
The net loss for the quarter was $684 million, primarily due to non-cash impairments related to the company's exit from Bitcoin mining operations. Management noted that this was expected and part of their strategy to shift focus towards AI infrastructure.
Despite the revenue miss, IREN's co-CEO Daniel Roberts expressed confidence in the company's growth prospects. He highlighted the rapid development of GPU financing as an asset class, with $6.5 billion raised in the last three months alone.