IREN Limited (NASDAQ: IREN), a bitcoin miner shifting into AI cloud computing, saw its shares fall sharply in Friday pre-market trading after the group posted a $684m net loss in its fiscal fourth quarter, driven by costs of that transition.
IREN shares closed Thursday’s session at $40.53, up 2.4% from $39.58, before the results were released after the bell. CoinDesk reported the stock fell 8% in Friday pre-market trading, reversing that gain. The shares sit well below their 52-week high of $76.87, and below both the 50-day moving average of $42.44 and 200-day average of $46.17.
IREN reported quarterly revenue of $137.2m, down 5% sequentially, alongside the $684m net loss. Of that, $450.4m was a non-cash impairment tied to decommissioning bitcoin-mining hardware as the company shifts capacity to AI cloud services. Chief financial officer Anthony Lewis said: “Net loss was $684 million for the quarter, largely driven by noncash impairments of $450.4 million.” Adjusted EBITDA, earnings before interest, tax, depreciation and amortisation, fell 68% quarter-on-quarter to $19.2m as staff costs and AI-cloud investment outpaced revenue recognition.
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Beneath the loss lies the clearest evidence yet of the pivot: AI cloud revenue more than doubled to $70.5m, overtaking bitcoin-mining revenue of $66.7m for the first time and making up 51.4% of the quarter’s total. IREN has $4bn of contracted annualised run-rate revenue tied to its 2026 AI capacity, but only around $1bn of that is currently operational, meaning most of the growth is still to be delivered. Earnings per share came in at a loss of $0.41, ahead of the Zacks consensus estimate of a $0.50 loss.
The market’s reaction suggests it is pricing the near-term cost of the transition, the impairments and falling EBITDA, rather than the long-term AI pipeline alone. The report is a reminder that the crypto-miner-to-AI-cloud pivot carries real near-term earnings pain even when the growth story remains intact.
