IREN shares fall following quarterly earnings miss

IREN shares experienced a significant decline, falling approximately 13% to 15% last week following quarterly results that missed analyst expectations. The company reported quarterly revenue of $137.2 million, which fell short of the $157 million projected by analysts. This decline in total revenue is attributed to a strategic shift away from cryptocurrency mining operations toward AI cloud services.

Despite the overall revenue dip, IREN’s AI cloud services revenue more than doubled sequentially to $70.5 million, representing over half of the company’s total revenue for the quarter ended June 30. The company’s adjusted EBITDA fell to $19.2 million. A substantial net loss of $684 million was reported, largely driven by approximately $450 million in write-downs on decommissioned Bitcoin mining hardware and $102 million in other special write-offs.

Co-CEO Daniel Roberts stated that the company is positioned to capitalize on the artificial intelligence boom, noting that IREN has assembled critical infrastructure including power, land, and data centers. The company is currently in discussions to provide capacity at higher rates, approximately $25 million per megawatt, up from previous deals of $20 million per MW.