Shares of IREN Limited advanced 6.4% to $44.51 during Monday's trading session, recovering a portion of last week's decline. The move higher came despite a drop in the price of Bitcoin, signaling a shift in investor focus toward the company's expanding artificial intelligence infrastructure business.
The firm reported financial results for the quarter ended December 31, posting revenue of $184.7 million. Bitcoin mining operations generated $167.4 million of that total, while AI Cloud Services contributed $17.3 million. However, IREN recorded a substantial net loss of $155.4 million for the period.
Management highlighted significant progress in securing capital for its strategic buildout. The company announced it has locked in $3.6 billion in financing for graphics processing units, linked to its contract with Microsoft, with an annual interest rate below 6%. Combined with a $1.9 billion prepayment from Microsoft, this funding is expected to cover approximately 95% of its GPU-related capital expenditures.
Analyst reactions were mixed following the earnings release. B. Riley increased its price target to $83 from $74, maintaining a Buy rating and citing the GPU financing agreement. Conversely, Cantor Fitzgerald reduced its target to $82 from $136, though it kept an Overweight rating, pointing to quarter-over-quarter declines in revenue and adjusted EBITDA.
Investor attention is now squarely on execution risk. The market is looking for evidence that IREN can successfully convert its announced financing and agreements into operational AI capacity without encountering funding hurdles or schedule delays. The company's future performance hinges on balancing its legacy Bitcoin mining revenue with the growth of its new AI services segment.
The next major catalyst for the stock is expected to be the quarterly results scheduled for May 13. Until then, traders will monitor for updates on GPU deployment timelines and any new AI customer agreements, while remaining aware of ongoing volatility in cryptocurrency markets.
