IREN Stock Tumbles Amid Rising Impairments and Cash Burn
IREN's stock price fell by over 6% in premarket trading after the company released its latest financial results. Despite reaching a significant milestone, with AI revenue surpassing Bitcoin mining operations, investors were concerned about the company's financials.
The AI cloud solution generated $70.5 million in revenue for the last quarter, up from $33 million in the same period last year. In contrast, Bitcoin mining revenue dropped to $66 million, down from $111 million in the previous year. The total revenue fell to $137 million from $144 million in the same period last year.
The company's impairments jumped sharply to over $450 million in the last quarter, up from $140 million in the previous period. Cash burn rose to $303 million as data center spending increased to $2.1 billion. Long-term debt surged to over $7.4 billion during the quarter from $962 million in the same period last year.
The CEO noted that the company's founding thesis had become tangible, with exponential AI consumption growth fueling demand for compute capacity beyond available supply infrastructure.