Iren Shares Plummet Amid Bitcoin Sell-Off and AI Deal Disappointment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy IREN?
Source: Fool
- Stock Price Plunge: Iren Limited's shares have dropped nearly 20% this week, with a current price of $4.06 as of midday Friday, reflecting a broader market trend of selling off tech stocks and Bitcoin, which has undermined investor confidence.
- Bitcoin Revenue Dependency: While Iren's AI cloud revenue more than doubled, Bitcoin mining revenue still accounted for 90% of total revenue for the quarter ending December 31, 2026, indicating a significant reliance on Bitcoin despite the company's shift towards AI.
- Capital Expenditure Financing: The company reported that 95% of the financing needed for GPU purchases is secured, including nearly $2 billion prepaid by Microsoft, which provides a financial foundation for future AI infrastructure expansion.
- Lack of New Partnerships: Despite the positive financing news, Iren did not announce any new AI deals, which likely disappointed investors and contributed to the ongoing decline in stock price.
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Analyst Views on IREN
Wall Street analysts forecast IREN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IREN is 80.40 USD with a low forecast of 39.00 USD and a high forecast of 136.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
8 Buy
2 Hold
2 Sell
Moderate Buy
Current: 39.790
Low
39.00
Averages
80.40
High
136.00
Current: 39.790
Low
39.00
Averages
80.40
High
136.00
About IREN
IREN Limited is an Australia-based company, which owns and operates data centers powered by 100% renewable energy. Its facilities are optimized for Bitcoin mining, artificial intelligence (AI) cloud services, and other power-dense compute. Its data center mining facilities are in Canal Flats, Mackenzie, Prince George and Childress. Bitcoin Mining provides security to the Bitcoin network. Al Cloud Services provides cloud compute to Al customers, approximately 1,896 NVIDIA H100 and H200 GPUs. Its Canal Flats facility is in the Canadian Rockies, 100 kilometers (km) from Cranbrook regional airport and 500km east of Vancouver. Its facility is in Prince George, the city in northern British Columbia, located 500 km north of Vancouver. Its facility is located in Childress County, Texas, over 250 miles northwest of Dallas and in close proximity to multiple wind and solar generating facilities in the region. Its Childress operations comprise 200 Mega Watt of operating data centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
IREN Limited Q2 2026 Earnings Call Insights
- Significant Financing Commitments: IREN secured $3.6 billion in GPU financing commitments during Q2 at an interest rate below 6%, covering approximately 95% of the GPU-related CapEx for its $9.7 billion AI contract with Microsoft, demonstrating strong capital acquisition capabilities.
- Optimistic Revenue Outlook: Management expects to deliver 140,000 GPUs by the end of 2026, achieving an annualized revenue run rate of $3.4 billion, despite total revenue of $184.7 million in Q2, which was down 23% from the prior quarter primarily due to lower Bitcoin mining revenue, while AI cloud revenues are accelerating.
- Power Resource Expansion: IREN has secured a new 1.6 gigawatt site in Oklahoma, increasing total secured power to over 4.5 gigawatts, ensuring future business growth's power needs and further solidifying its competitive position in the AI cloud services market.
- Operational Efficiency Improvement: The company leverages vertical integration to control costs and service quality, with expectations to continue signing new contracts amid strong customer demand, while management remains confident in execution capabilities despite industry challenges in technology and human resources.
See More
IREN Limited Reports Q2 Loss of $155.4 Million Amid Revenue Decline
- Financial Performance Decline: IREN Limited reported a net loss of $155.4 million in Q2, a stark contrast to a profit of $384.6 million in Q1, indicating significant challenges in profitability and operational pressures amid a tough market environment.
- Revenue Drop: The company's revenue for Q2 stood at $184.7 million, reflecting a year-over-year decline of 23.1% and missing expectations by $42.2 million, which could negatively impact investor confidence and future financing capabilities.
- Stock Price Reaction: Despite the disappointing financial results, IREN Limited's shares rose by 1.7%, suggesting a possible market optimism regarding the company's long-term prospects or investor resilience to short-term volatility.
- Market Response Analysis: In the context of declining Bitcoin and Ethereum prices, IREN Limited has shown some resilience as a crypto-tied stock, indicating its potential attractiveness in a volatile market.
See More
Iren Shares Plummet Amid Bitcoin Sell-Off and AI Deal Disappointment
- Stock Price Plunge: Iren Limited's shares have dropped nearly 20% this week, with a current price of $4.06 as of midday Friday, reflecting a broader market trend of selling off tech stocks and Bitcoin, which has undermined investor confidence.
- Bitcoin Revenue Dependency: While Iren's AI cloud revenue more than doubled, Bitcoin mining revenue still accounted for 90% of total revenue for the quarter ending December 31, 2026, indicating a significant reliance on Bitcoin despite the company's shift towards AI.
- Capital Expenditure Financing: The company reported that 95% of the financing needed for GPU purchases is secured, including nearly $2 billion prepaid by Microsoft, which provides a financial foundation for future AI infrastructure expansion.
- Lack of New Partnerships: Despite the positive financing news, Iren did not announce any new AI deals, which likely disappointed investors and contributed to the ongoing decline in stock price.
See More
IREN Price Target Adjustments and Performance Analysis
- Price Target Adjustments: B. Riley raised IREN's price target from $74 to $83 while maintaining a ‘Buy’ rating, contrasting with Cantor Fitzgerald's reduction from $136 to $82, indicating mixed market sentiment regarding the company's outlook.
- Performance Decline: IREN reported Q2 revenue of $184.7 million, missing analysts' expectations of $226.9 million, with a net loss of $155.4 million compared to a net profit of $18.9 million in the same quarter last year, highlighting significant financial pressures.
- Strategic Transition: Cantor Fitzgerald noted that IREN is deliberately shifting from Bitcoin mining to AI-focused computing capacity, which, while contributing to declines in revenue and adjusted EBITDA, lays the groundwork for future growth opportunities.
- Market Sentiment: Despite IREN's stock trading over 1% lower on Friday morning, retail sentiment on Stocktwits remained in the ‘extremely bullish’ territory, reflecting confidence in the company's long-term growth potential.
See More
IREN Limited Reports Disappointing Q2 Results, Stock Declines
- Earnings Miss: IREN reported a Q2 loss of $0.52 per share, significantly worse than the expected $0.14 loss, with revenues of $184.69 million falling short of the $228.13 million consensus, indicating substantial financial strain on the company.
- Impact of Non-Cash Losses: The results were affected by $219.2 million in unrealized losses tied to convertible notes and $31.8 million in mining hardware impairments, highlighting challenges in the transition to GPU-based AI infrastructure.
- Progress in AI Cloud Infrastructure: Despite the disappointing earnings, IREN secured $3.6 billion in GPU financing for a Microsoft contract, aiming to expand to 140,000 GPUs and achieve $3.4 billion in annual recurring revenue by 2026, showcasing long-term growth potential.
- Technical Analysis Indicates Weakness: IREN's stock is currently trading 28% below its 20-day and 24.5% below its 100-day simple moving averages, indicating bearish pressure, with a critical support level at $37.00 that, if breached, could signal further weakness ahead.
See More
IREN Struggles: A Tale of Crypto Challenges and AI Successes.
- Earnings Report Impact: IREN's stock experienced volatility following a disappointing earnings report that raised concerns about its cryptocurrency mining operations.
- Management's Optimism: Despite the negative earnings, management expressed optimism regarding a transition towards artificial intelligence computing.
See More
IREN Limited Q2 2026 Earnings Call Insights
- Significant Financing Commitments: IREN secured $3.6 billion in GPU financing commitments during Q2 at an interest rate below 6%, covering approximately 95% of the GPU-related CapEx for its $9.7 billion AI contract with Microsoft, demonstrating strong capital acquisition capabilities.
- Optimistic Revenue Outlook: Management expects to deliver 140,000 GPUs by the end of 2026, achieving an annualized revenue run rate of $3.4 billion, despite total revenue of $184.7 million in Q2, which was down 23% from the prior quarter primarily due to lower Bitcoin mining revenue, while AI cloud revenues are accelerating.
- Power Resource Expansion: IREN has secured a new 1.6 gigawatt site in Oklahoma, increasing total secured power to over 4.5 gigawatts, ensuring future business growth's power needs and further solidifying its competitive position in the AI cloud services market.
- Operational Efficiency Improvement: The company leverages vertical integration to control costs and service quality, with expectations to continue signing new contracts amid strong customer demand, while management remains confident in execution capabilities despite industry challenges in technology and human resources.
See More
IREN Limited Reports Q2 Loss of $155.4 Million Amid Revenue Decline
- Financial Performance Decline: IREN Limited reported a net loss of $155.4 million in Q2, a stark contrast to a profit of $384.6 million in Q1, indicating significant challenges in profitability and operational pressures amid a tough market environment.
- Revenue Drop: The company's revenue for Q2 stood at $184.7 million, reflecting a year-over-year decline of 23.1% and missing expectations by $42.2 million, which could negatively impact investor confidence and future financing capabilities.
- Stock Price Reaction: Despite the disappointing financial results, IREN Limited's shares rose by 1.7%, suggesting a possible market optimism regarding the company's long-term prospects or investor resilience to short-term volatility.
- Market Response Analysis: In the context of declining Bitcoin and Ethereum prices, IREN Limited has shown some resilience as a crypto-tied stock, indicating its potential attractiveness in a volatile market.
See More
Iren Shares Plummet Amid Bitcoin Sell-Off and AI Deal Disappointment
- Stock Price Plunge: Iren Limited's shares have dropped nearly 20% this week, with a current price of $4.06 as of midday Friday, reflecting a broader market trend of selling off tech stocks and Bitcoin, which has undermined investor confidence.
- Bitcoin Revenue Dependency: While Iren's AI cloud revenue more than doubled, Bitcoin mining revenue still accounted for 90% of total revenue for the quarter ending December 31, 2026, indicating a significant reliance on Bitcoin despite the company's shift towards AI.
- Capital Expenditure Financing: The company reported that 95% of the financing needed for GPU purchases is secured, including nearly $2 billion prepaid by Microsoft, which provides a financial foundation for future AI infrastructure expansion.
- Lack of New Partnerships: Despite the positive financing news, Iren did not announce any new AI deals, which likely disappointed investors and contributed to the ongoing decline in stock price.
See More
IREN Price Target Adjustments and Performance Analysis
- Price Target Adjustments: B. Riley raised IREN's price target from $74 to $83 while maintaining a ‘Buy’ rating, contrasting with Cantor Fitzgerald's reduction from $136 to $82, indicating mixed market sentiment regarding the company's outlook.
- Performance Decline: IREN reported Q2 revenue of $184.7 million, missing analysts' expectations of $226.9 million, with a net loss of $155.4 million compared to a net profit of $18.9 million in the same quarter last year, highlighting significant financial pressures.
- Strategic Transition: Cantor Fitzgerald noted that IREN is deliberately shifting from Bitcoin mining to AI-focused computing capacity, which, while contributing to declines in revenue and adjusted EBITDA, lays the groundwork for future growth opportunities.
- Market Sentiment: Despite IREN's stock trading over 1% lower on Friday morning, retail sentiment on Stocktwits remained in the ‘extremely bullish’ territory, reflecting confidence in the company's long-term growth potential.
See More
IREN Limited Reports Disappointing Q2 Results, Stock Declines
- Earnings Miss: IREN reported a Q2 loss of $0.52 per share, significantly worse than the expected $0.14 loss, with revenues of $184.69 million falling short of the $228.13 million consensus, indicating substantial financial strain on the company.
- Impact of Non-Cash Losses: The results were affected by $219.2 million in unrealized losses tied to convertible notes and $31.8 million in mining hardware impairments, highlighting challenges in the transition to GPU-based AI infrastructure.
- Progress in AI Cloud Infrastructure: Despite the disappointing earnings, IREN secured $3.6 billion in GPU financing for a Microsoft contract, aiming to expand to 140,000 GPUs and achieve $3.4 billion in annual recurring revenue by 2026, showcasing long-term growth potential.
- Technical Analysis Indicates Weakness: IREN's stock is currently trading 28% below its 20-day and 24.5% below its 100-day simple moving averages, indicating bearish pressure, with a critical support level at $37.00 that, if breached, could signal further weakness ahead.
See More
IREN Struggles: A Tale of Crypto Challenges and AI Successes.
- Earnings Report Impact: IREN's stock experienced volatility following a disappointing earnings report that raised concerns about its cryptocurrency mining operations.
- Management's Optimism: Despite the negative earnings, management expressed optimism regarding a transition towards artificial intelligence computing.
See More
