IREN Stock Tumbles Amid Strong AI Growth

IREN's stock price plummeted by over 8% in after-hours trading on Thursday, despite its AI cloud business experiencing explosive growth. The company's transformation into an AI infrastructure provider has been marked by a significant shift in revenue mix, with AI Cloud Services revenue more than doubling sequentially to $70.5 million from $33.6 million.

This accounted for over 51% of the company's total quarterly revenue, while Bitcoin mining revenue fell to $66.7 million from $111.2 million in the previous quarter. For the full fiscal year, AI Cloud revenue surged nearly eightfold to $128.8 million, while total company revenue climbed 41% to $707 million.

IREN reported a quarterly net loss of $684 million, widened from $247.8 million in the previous quarter. However, $450.4 million of this loss came from non-cash impairments, largely associated with decommissioning Bitcoin mining equipment as infrastructure is repurposed for AI workloads.

The company's massive five-year Microsoft contract worth approximately $9.7 billion anchors its transformation into an AI provider. IREN now says it has around $4 billion in contracted annualized run-rate revenue associated with its 2026 AI capacity, with approximately $1 billion already operating.