Shares of IREN Limited declined approximately 0.9% to $41.46 in premarket trading on Monday, extending volatility after the company's latest financial results. The movement reflects the dual pressures facing the firm: exposure to cryptocurrency markets and its ambitious expansion into artificial intelligence cloud infrastructure.
Bitcoin retreated about 3.1% to near $69,064, weighing on stocks linked to digital asset mining. IREN reported a net loss of $155.4 million for its fiscal second quarter, with revenue totaling $184.7 million. The company noted a drop in bitcoin mining income, partially countered by rising sales from its AI cloud services division.
Management highlighted a strong demand environment and detailed significant progress in building its AI capabilities. IREN has secured $3.6 billion in financing for graphics processing units (GPUs) at an annual interest rate below 6%. Combined with a $1.9 billion prepayment from Microsoft, this covers roughly 95% of the capital required for GPUs under its contract. The company ended January with $2.8 billion in cash and equivalents.
IREN is targeting 140,000 GPUs and aims to achieve $3.4 billion in annual recurring revenue by the end of 2026. This goal is based on a run-rate metric for contract income and is not yet fully contracted. The company also plans a 1.6 gigawatt data center campus in Oklahoma, boosting its total secured grid-connected power capacity above 4.5 gigawatts.
Last year, Microsoft entered into a $9.7 billion agreement with IREN to secure access to high-performance Nvidia chips, underscoring the intense competition for AI computing resources. However, some analysts point to cooling investor sentiment toward heavy AI infrastructure spending.
The company acknowledged that its revenue target depends on several assumptions, and financing remains subject to final documentation and interest rate conditions. Potential delays in chip supply, softer-than-expected AI adoption, or further cryptocurrency declines pose risks to its outlook.
Traders are monitoring bitcoin's price action and broader risk appetite toward AI infrastructure investments as the week begins. IREN's next earnings report is scheduled for release on or around May 13.
