IREN's $4 Billion Promise Sparks Market Skepticism
IREN's $4 billion promise is facing skepticism in the market after its stock shed 14% over seven trading sessions. The disconnect between the backlog and share price highlights the company's identity shift from a Bitcoin mining operation to an AI infrastructure provider.
The June quarter numbers revealed AI cloud revenue surpassing Bitcoin mining segment revenue for the first time, with $70.5 million versus $66.7 million. For the full fiscal year, the AI unit grew eightfold to $128.8 million, while mining revenue contracted 40%.
Despite having locked in contracts worth $4 billion from anchor customers like Microsoft and Nvidia, only about $1 billion of that is currently operational. The remaining capacity won't come online until the fourth quarter, with actual revenue expected in Q3 2027.